Contracts can break down at any step in the process

A fundamental principle in business is the agreement between two parties for goods and services. Sometimes it’s a buyer-seller relationship, other times it’s something behind the scenes that is essential to help you get your job done. Whatever the contract is, it affects your bottom line and your business overall. It may be something obvious and central to your brand or it can be a subtle cog in the system.

When a cog breaks down, the whole system can go. While sometimes it’s the main ingredient at a bakery or a key component for a technology company, it can also be something as basic as a packaging supplier or a forklift.

Every tool matters

In an ongoing Colorado case, Mile High Spirits is embroiled in a legal battle with Discount Forklift Brokers over the cost of a forklift battery. While the issue may look trivial at a quick glance, a distillery can’t move its products without a functioning forklift. Whether it’s getting grain in the door to make their products or to move the finished bottles out, transportation is a key cog for the business.

The situation in Denver is more convoluted than just a battery. It involves a loaner forklift and a separate bankruptcy filing, which highlights how even a simple transaction can go awry. How you draft contracts and enforce them will affect finances, efficiency and customer experience. With the contentious relationships in Colorado, it’s unlikely that the forklift dispute will be settled amicably.

A solid foundation

They say the only certainty in business is change—and contracts help establish your foundation amid an evolving environment. Whether the challenge is a customer bankruptcy, a disputed bill over repairs or an unexpected storm that interrupts the supply chain, a successful business owner is ready for the challenge. When forging your business operations, it’s important to consider the different scenarios that will affect any situation. An experienced business lawyer can help with basics like structure and tax plans, but also with contract language and out clauses to help you meet any situation.

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