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How a Commercial Contract Lawyer deals with uncertainty in contracts

Uncertainty in a contract refers to any provisions or terms that are vague, ambiguous, or open to interpretation. A commercial contract lawyer can handle uncertainties in contracts in a way that benefits all parties to the contract.

This article was written by Farrah Motley, Director of Prosper Law and a commercial contract lawyer. Contact us at enquiry@prosperlaw.com.au or call 1300 003 077.

A commercial contract lawyer will try to avoid uncertainty

Uncertainty is a fact of modern life. However uncertainty in contracts leads to additional problems – disputes, misunderstandings, and legal challenges.

There are six sources of uncertainty in a contract – ambiguity, undue generality, inconsistency, redundancy, conflict, and vagueness. The first of the six sources, ambiguity, is often used as a catch-all for the other five sources of uncertainty.

Uncertainty can arise in a contract in many ways. For example, a contract may be unclear as to the rights and obligations of the parties, or it may contain ambiguous language that is open to interpretation. In such cases, the parties may have different understandings of the terms of the contract, which can lead to disagreements and disputes.

A commercial contracts lawyer can avoid uncertainties in contracts by careful drafting. She may use clear, concise language and detail all important terms and conditions to uncertainty. The commercial contract lawyer can also include provisions that specify how to handle uncertainties that may arise in the contract.

Moreover, the lawyer can also work with the parties to clarify unclear terms or negotiate changes to the contract to eliminate ambiguities. She can advise the parties on any legal issues that may arise from the contract and help them identify any potential risks or problems that may arise during the life of the contract.

commercial contract lawyer

A commercial contract lawyer will advise of the different ways the contract could be interpreted

It is easy to sign a contract without understanding the terms of a business deal. However, once the parties sign a contract, they are bound by the terms, making it difficult to get out of it.

For example, many contracts contain a clause an “entire agreement clause.” It means that if there is a dispute about the terms of the contract, the court should only consider the wording of the contract.

If there is no “entire agreement clause” in the agreement, things become even more important. In this case, the only evidence may be the words of one party against the other person. Therefore, it is difficult to predict how a court will decide.

A commercial contract lawyer will advise on how to interpret different provisions to make better decisions and avoid uncertainty. This will help parties understand the potential risks and consequences of each interpretation. The lawyer may also consider relevant case laws that may be relevant to the interpretation of the contract.

Uncertainty in a contract could be used to argue the contract is unenforceable

An unenforceable contract is a contract that is not legally binding. Just because a contract is signed does not mean that both parties are bound by its terms under all circumstances. Some events may make it impossible to fulfil a contract, making the agreement unenforceable.

A contract may also be unenforceable for numerous other reasons due to the terms of the contract or events that occur after the signing of the contract. In such cases, the court does not compel one party to act or compensate the other party for failure to fulfil the terms of the contract.

A commercial contract lawyer can help by reviewing the contract and uncovering any problematic provisions. By being a guard before signing, the commercial contract lawyer can help identify parties potential weaknesses on time and avoid costly court intervention.

Besides reviewing the contract, a contract lawyer can also help anticipate and address potential defences that may arise in case of a dispute. This may include identifying potential weaknesses or vulnerabilities in the contract and taking steps to strengthen or eliminate potential risks.

Uncertainty in a contract could be used by a commercial contract lawyer to get the best outcome for their client

It is generally not beneficial for a contract to contain uncertainty, as uncertainty can create potential problems for both parties.

However, a commercial contract attorney can use uncertainty as leverage in negotiations with the other party. By pointing out uncertain areas, the lawyer may negotiate more favourable terms for their client, such as more favourable pricing, better terms, or more favourable rights and obligations.

For example, if the contract is unclear on the rights and obligations of the parties, the lawyer may use this to argue that his interpretation of the contract is more reasonable or more in line with industry practice.

How can Prosper Law help?

Prosper Law is Australia’s online law firm. We provide legal advice to businesses and individuals across Australia. Our areas of legal practice include contracts, eCommerce, publishing, legal counsel and employment law.

If you need to talk to a commercial contract lawyer, get in touch today.

Contact the team at Prosper Law to discuss how we can provide you with legal advice for a fixed fee or at affordable hourly rates.

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