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Tips for making a contract dispute less likely

Contracts are incredibly important pieces of documentation, but all parties involved may be tempted to rush the process, looking at it as just a formal step that has to be taken care of before the real work can begin. However, rushing this can lead to mistakes and contract disputes. The following tips can help keep that from happening.

1. Make sure that both sides clearly identify the parties who will be bound by the contract. This can include individuals and corporations.

2. Never be vague, but always specify just what services the contract authorizes. For complex projects, it can even help to break down each individual service. This helps to avoid a situation where one side assumes certain tasks will be done when they are never actually part of the plan.

3. Include a schedule of events if you can. You want everyone to be on the same page, with the same expectations, regarding when work will be completed and what tasks are to be done.

4. If there are any guarantees or warranties in the contract, be sure they are clearly laid out and that all sides understand the protections and promises they offer.

5. If insurance is being used, make sure the type of coverage is specified, along with exactly what will be covered.

As you can see, much of the process revolves around simply being precise and accurate so that there are no assumptions and no confusion. However, even this does not mean that a contract dispute will never arise, so it's also important to know what legal options you have in Colorado.

Source: Risk Management, "10 Tips for Reducing the Risk of a Contract Dispute," Tracy McCreight, accessed Feb. 08, 2016

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