Contracts are essential to protecting your business interests. Whether you’re working with vendors, hiring employees, or entering into partnerships, a well-written contract helps set expectations and minimize risk. Unfortunately, many businesses in Oklahoma make avoidable contract mistakes—some of which can lead to costly disputes, cash flow issues, or even litigation.
Verbal Agreements Can Lead to Uncertainty
In some situations, business owners rely on verbal agreements, especially when the relationship feels informal or based on trust. But when there’s no written contract, misunderstandings are far more likely. Verbal agreements are difficult to prove in court, and without clear terms in writing, it becomes one person’s word against another’s. A written agreement removes that uncertainty and offers clear terms everyone can follow.
Vague Language Creates Room for Dispute
The strength of a contract depends on the clarity of its language. Terms that are too broad or open to interpretation—such as “reasonable time” or “as needed”—can cause serious problems. These phrases may seem harmless at first, but they often lead to disagreements when expectations differ. Precision in contract language helps prevent confusion and protects both parties from future disputes.
Payment Terms and Termination Clauses Are Often Overlooked
Two of the most frequently overlooked contract elements are payment terms and termination clauses. Payment details—how much is owed, when it’s due, and how it should be made—are essential to maintaining healthy business operations. Likewise, contracts should provide a clear process for ending the agreement. Without a defined termination clause, you may be forced to continue a contract that no longer serves your business or face legal consequences for walking away.
Dispute Resolution Should Be Addressed Up Front
When a disagreement arises, a well-drafted contract should outline how the dispute will be resolved. Some agreements include mediation or arbitration clauses to avoid lengthy court proceedings, while others allow for formal litigation. Deciding on a process ahead of time can help control costs, reduce stress, and lead to faster resolution.
Compliance with Oklahoma Law Is Crucial
Every contract must comply with state and federal laws, including industry-specific regulations. If a contract doesn’t meet legal standards, it could be unenforceable—or worse, leave your business exposed to liability. It’s important to have contracts reviewed with Oklahoma law in mind, especially if your business operates in a regulated field.
Generic Templates Often Miss the Mark
Online templates might seem convenient, but they’re rarely a good fit for your specific needs. Generic contracts tend to lack critical protections and usually aren’t tailored to Oklahoma law. Investing in a customized contract ensures that your agreement reflects your business’s goals, structure, and legal obligations.
Working with a Business Attorney Makes a Difference
At Outhier & Caruthers, PLLC, we help business owners across Oklahoma draft, review, and revise contracts that support long-term success. Whether you’re starting a new venture or updating existing agreements, we’re here to make sure your contracts work for you—not against you. Call today at (580) 234-6600.
