You may well think that legal contracts are a “necessary evil” in business. Yes, they serve a purpose, but they are also a source of extreme frustration and anxiety for many business people — particularly ambitious and motivated entrepreneurs and salespeople — who want to close deals and get things done quickly.
As lawyers, we asked, why are legal contracts loathed? Here are 5 reasons that come up again and again:
“Contracts are time-consuming.”
Legal contracts can be incredibly time-consuming to create and review. As an entrepreneur, focussed on growing your businesses, you may view legal as a distraction from your core activities. You may feel that the time spent on contracts could be better spent on other tasks that are more directly related to generating revenue.
Contracts use unnecessarily complex language and jargon.” Legal contracts are often written in complex legal language that can be difficult for someone without legal training to understand. This can be infuriating for anyone not trained in the legal field who feel (often rightly) that the language is unnecessarily convoluted. It's just another barrier to surmount in the process of getting a deal across the line.
“The implications of contract terms are unclear, how can I trust what I don't fully understand?”
Legal contracts terms can seem like an enigma to some business people. Nobody wants to sign a document they don’t feel they fully understand. And it makes sense to be cautious before agreeing to terms that may have unforeseen implications. Lack of transparency invariably leads to unease and distrust between the parties involved.
“It’s not helpful to focus on potential risks now, I'll deal with them when they arise.”
Legal contracts can create a sense of risk and doom, especially for entrepreneurs who have the burden of keeping their business solvent. You may worry that you're signing away rights or accepting liabilities that you can’t afford. This can be particularly daunting for small businesses with limited resources to engage in lengthy legal battles if something goes wrong.
For some people, just the thought of legal contracts can conjure negative associations of conflict and mistrust. It's understandable why it can be hard to approach legal contracts with a positive attitude!
“Contracts are expensive.”
Historically, the choices haven't been great.
Law firms have been expensive, and therefore contracts have been expensive too
The alternative, cheap (or free) contract templates that can be downloaded on the internet, can open you up to risk that could cost your business. We think Cloud Contracts 365 solves these problems.