WHAT IS THE RIGHT MODEL CONTRACT?
As a lawyer, the first question we always ask our clients is whether the model contract is the best choice for a contract. For some legal transactions, a well-prepared model contract may be sufficient, but there are also outliers.
These are usually situations where, due to the nature of the legal relationship, the contractual provisions do not need to be too flexible or one party does not wish to give the other party significant leeway.
The use of model contracts can be really useful when a particular type of contract is to be used in large numbers with minimal technical modifications at most. Perhaps the best example of this is the employment contract, where a lawyer can develop in advance a template contract and related documents for a company, tailored to the specific job role, which can be used in the long term.
It is important, however, that the model contract is always drawn up by a practising lawyer, as improperly drawn up models can have serious consequences later on.
1. Is the downloaded model contract valid?
This question can almost never be determined by people with insufficient legal knowledge.
To continue with the example of employment contracts, just because a downloaded model contract contains paragraphs or a reference to the Labour Code and appears legal at first glance, it does not necessarily mean that the document complies with the legislation in force.
2. Does the model contract reflect the parties’ intentions?
If the parties use a model contract from an uncertain source without making any changes, they are not designing the framework of the legal relationship according to their own ideas. The model may contain provisions that the parties would not have accepted if they had been properly informed. However, it is also possible that the text of the contract lacks essential elements which could provide them with adequate safeguards.
3. The model contract alone may not be sufficient and supporting documents required by law may be needed
To return to the example of the employment contract: although a dubious model contract is signed between the employer and the employee, the employer has not yet fulfilled its legal obligation. In the case of a contract between a contracting party and the employer, the contractor has not yet failed Article 46 of the Mt does not, in fact, fulfil the obligation of the employer to inform the employee in writing within seven days of the start of employment. The previous legislation reduced the time limit from fifteen to seven days, and more information must be given to the employee than before.
4. The model contract alone may not be sufficient and supporting documents required by law may be needed
A situation where provisions that are deemed to be sympathetic from the text of another model contract are slavishly incorporated into a separate contract should also be avoided. In order to assess whether the same paragraph has the same legal effect in both cases, it is necessary to know all the circumstances of both cases. It is very unlikely that all the information will be available to make such an assessment. And even if it could be done, legal expertise would be needed to decide this.
5. A good contract helps avoid disputes
A good contract is one that is mutually beneficial for both parties, but protects their interests as effectively as possible. We believe that this is the first and most important area in the life of a business and cannot be managed (or managed by others) without proper legal expertise.
If that’s how your business has worked up to now, you may have reached a certain point. But that’s no guarantee that everything will always be fine in the future. Without the right contracts, you’re not just putting your growth at risk, but the very existence of your business. Having your company’s contracts in order will help reduce the number of disputes. And when it comes to litigation, it reduces the risk of your company losing out.
INSTEAD OF DOWNLOADING A SAMPLE CONTRACT, WE CREATE CONTRACTS TAILORED TO YOUR BUSINESS NEEDS
Finding answers to legal questions on the internet at the moment may be free. But that answer could cost you many times the price of a lawyer’s advice later, or in extreme cases, the life of your business. Feel free to learn from others about legal solutions that work well, because you’ll only learn. But never apply it until you have checked with your lawyer that it can work in your business.
The internet contract template and Google search usually work up to the point where the company is “burned” on a legal or business issue. In such cases, it is often said that it is cheaper – both in terms of expense and loss of revenue – to go to a lawyer at the outset of the case. Moreover, it is not certain that the problems will be remedied afterwards.
