Do Not Put Your Business at Risk – Why You Should Not Copy A Contract from Another Business

By: Michael Safren, Esq.

When you started your small business, you probably benefited from others who have started this journey – advice, stories, referrals, etc.  But copying another business’s contract could put your business at risk.  There are many reasons to ensure that your contracts are as unique as your business is.

Some of the Risks of Copying a Contract from Another Business

1.  You Don’t Know Who Drafted the Agreement. 

You probably don’t know who drafted the agreement you are trying to copy.  Was the agreement drafted by an experienced attorney, or by an inexperienced business owner, or is it just an online template?  When you copy a contract from another source, there is no way to ensure that the contract has all the necessary components to protect you and your business and make it legally enforceable for your business.  Even if you are certain that a knowledgeable and experienced attorney drafted the agreement, it still might not cover the specifics of your business or have favorable terms for your current purposes.  Contracts are not one size fits all!

2.  You Don’t Know the Jurisdiction the Contract was Drafted for. 

Laws covering contracts and businesses are specific for each jurisdiction and another businesses’ contract may not be applicable or enforceable in Washington.  Even between cities and towns right next to each other, there could be different legal requirements and restrictions for contracts and businesses.  It’s essential that your contract cover the jurisdictions your business is based in as well as where it does business.

3.  You Might Not Understand Everything in the Contract. 

Many contracts contain legalese and legal jargon which has an impact on the agreement and can be confusing.  You might not understand all the nuances of the contract and what it’s promising, prohibiting, and obligating you to do.  An attorney with experience working with small business owners can make sure you understand every contract you sign.

4.  You Don’t Know When the Contract Was Drafted. 

Laws, cases, and legal obligations change over time.  Simply copying another business’s contract exposes you to the risks of using an outdated contract.  An experienced attorney monitors the state of the law and can make sure the language in your contract is up to date and consistent with updated laws, cases, and legal principles.

5.  You Are at Risk of Making a Copyright Violation. 

Legal contracts are protected by the same copyright laws that protect your logo and information on your website.  Copying another business’s contract and just changing the names and dates puts you at serious risk for copyright infringement.

Do Not Put your Business at Risk.

It may seem like you can save the expense of hiring a lawyer to draft your contracts but it may cost you more in the end to have to fight a losing battle over a contract that doesn’t actually protect your business.

You’ve put lots of hard work into creating this business.  It’s important to hire an experienced attorney to draft contracts for your business to protect it. 

Michael Safren is a Partner at The Law Offices of Jenny Ling, PLLC.  His practice focuses on business, real estate, and civil litigation.