Why is a contract from the Internet not the best idea?
Contracts and contracts are one of the fundamental parts in the work of any business. A lot depends on the quality of drawing up such documents – reputation, profit, the future of the company. On the Internet, you can find a large number of ready-made templates for almost any type of contract, and many entrepreneurs actively use this. But is it worth the risk using a sample contract or agreement from the Internet?This issue is especially relevant for those who work with foreign clients and contractors, as well as through foreign companies and structures. Let's weigh all the risks and benefits of contracts from the Internet to find the answer to this question.
Advantages of contracts and contracts from the Internet
Contracts and contracts from the Internet have two potential advantages. The first is the time frame, instant readiness for use. There is no need to wait for a lawyer to prepare a contract for you, it is enough to fill in the gaps in the finished template and the agreement is ready. Often this advantage bribes those who urgently need to conclude a contract or enter into a deal.
The second advantage of such contracts is their price. Such contracts are free of charge. The work of any lawyers costs money (especially professional lawyers with knowledge of international law), and this leads to additional costs. In an effort to save money, many businessmen are looking for contracts on the Internet. Now, I understand all the main advantages, let's assess the risks of ready-made contracts and contracts from the Internet.
The risks of using contracts and contracts from the Internet
As for the risks when using contracts from the Internet, they are much greater than the potential benefits.
1. Many contracts and contracts from the Internet are already outdated.
Legislation is constantly changing, and this process should always be taken into account when drafting contracts and contracts. It is often possible to find documents on the Internet with links to already invalid norms and laws, which makes the further execution of such contracts difficult.
2. Often, contracts and contracts from the Internet are based on the law and laws of a country that does not correspond to the parties to such an agreement.
English is used by many countries and territories, and the fact that you have found a contract in English does not guarantee that it is based on the law of the country you need. As a consequence, not all terms of contracts may comply with the laws of your country of residence, which means they cannot be executed. In practice, there are even cases when banks refuse to make payments under such contracts if they see such errors.
3. You can find a contract-"Frankenstein".
Under the contract – "Frankenstein" means a document drawn up without appropriate processing from several other documents. They arise due to the fact that persons without proper legal education, in the absence of a ready-made contract or contract that would correspond to their vision of the transaction, make it themselves from samples available on the Internet. As a result, in such contracts, you can find a lot of inconsistencies in terminology, contract terms, applicable laws and many other things, because of which the further implementation of agreements based on these contracts causes various difficulties and difficulties.
4. In contracts and contracts from the Internet, the conditions often do not correspond to the actual agreements of the parties.
Any contract is a written agreement of the parties, which can agree among themselves any conditions convenient for themselves. A logical consequence of this is the fact that when using contracts from the Internet, there are no guarantees that its compiler has taken into account all aspects and your wishes for a future transaction. Moreover, in such contracts there are often "superfluous" conditions, for example, on the provision of any documentation. When conducting tax audits, such contracts may be recognized as "fictitious", and the consequences of this can hurt the entrepreneur's wallet.
A separate difficulty is the correct indication in the contract of the procedure for resolving disputes. For example, in many contracts there is a reference to the London Arbitration. This is, of course, an extremely respected body, but resolving disputes in it is a very costly matter, which the parties often forget.
5. On the Internet, there are often contracts and contracts in which mistakes are intentionally made.
Yes, that's right – versions of contracts are often posted on the Internet, in which certain mistakes are intentionally made. This happens when such contracts are laid out for example with the condition of further ordering their development, or in order to protect against illegal copying, since the contract is also an object of copyright.
So is it still possible to use contracts from the Internet, or not?
Definitely not! Even downloading a contract template from any legal reference system (for example, League, Consultant, Guarantor, Business-in-the-box, etc.), you run a very high risk if you do not involve a professional lawyer in their verification and final editing. Having saved on the contract, of course, you can get a document on the basis of which you can start working, but later this transaction can bring headaches, losses and even fines.
Antwort lawyers are always happy to help in the preparation or verification of international agreements and contracts.
Entrust the future of your transactions to professionals!