Are you a business owner? Make sure you don't violate these contract provisions
Drafting contracts can be a tedious and difficult process for experienced and new small business owners. The lawyers at Doucet & Associates Co., L.P.A. have experience helping small business owners draft business and operation contracts to help prevent future lawsuits. We also offer a free video seminar online about contract drafting that you can watch by clicking here.Don’t forget the right to cancel
There are many different types of contracts small business owners may need for their business. If you are starting a business that is considered a prepaid entertainment such as a gym, dance studio, martial arts studio, or another organization that requires a membership or a routine payment we may be able to help you draft a contract for your consumers. One of the biggest mistakes we see in prepaid entertainment contracts is a consumers right to cancel. If you contact our small business lawyers for help drafting a contract, we can help ensure you understand a consumers right to cancel under the Prepaid Entertainment Contracts Act to avoid future lawsuits. You can read more about PECA consumer rights on our website by clicking here.
Be careful about automatic renewal
Another mistake we have found in contracts is the automatic renewal. Depending on the business, automatic renewal on a contract cannot exceed three years. Automatic renewal is often apparent in lease agreement contracts, equipment rental agreements, and prepaid entertainment contracts. It is important as a small business owner to understand how long a consumer has to decide if they want to renew a service, before it automatically renews. It is also important to place provisions in small business contracts that explain to the consumer how they can stop a service from renewing at the end of a term.
Stay away from hidden fees
Lastly, consumers who become a victim of hidden fees are protected by the Truth In Lending Act. Some businesses will try to make extra money off of consumers by placing hidden fees in their contracts. Our small business lawyers can help assist you draft a contract that avoids hidden fees. Doucet & Associates Co LPA is a consumer litigation law firm that takes joy in helping consumers fight their way out of contracts when they become victims to hidden fees. Our experience litigating for consumers has helped us be more aware of how to avoid placing hidden fees in contracts. If you are a small business owner and would like some assistance drafting, editing, or reviewing a contract, contact us today at (614)944-5219 or click here to send us a message online.