4 things your templated legals could be missing

Rise Up In Business

DIY is for Bunnings, not legals.

I say this for good reason: the amount of business owners using templates in order to save money is more than a little eye-watering.

I understand that with all the costs involved in running a business, there’s a certain allure to the convenience and cost-effectiveness of legal templates.

But trust me, after over 12 years as a litigator, I've seen just how badly things can go. You name it, I’ve seen it - and I don’t want this to happen to you.

So to help you avoid getting caught up in any legal disputes, I want to take you through four crucial things that templated legals often miss - as well as the potential fallout if these gaps are left unaddressed.

1. Personalisation and Professionalism

Templates tend to miss one key factor time and time again: personalisation and professionalism. When crafted correctly, your legal documents can be one of the most powerful tools your business has. They protect your business, exceed client expectations and foster positive word of mouth.

Generic templates loaded with legalese about "aforementioned clauses" won't cut it. Ask yourself: how proud are you to send out your current legal documents? Do they reflect your brand accurately?

2. Industry-Specific Tailoring

Another significant shortcoming of templated legals is the lack of industry-specific tailoring. Stock templates you find online are likely to be generic, containing only basic terms around the parties, the agreement, and payment schedules. Your business is unique, and your legal documents need to be explicitly tailored to reflect that.

This covers things like what constitutes a variation and how additional costs will be handled. Without these tailored provisions, you risk misunderstandings, delayed payments and misaligned expectations.

3. Warranty Clauses and Liability Protection

The third overlooked area in templated legals is the inclusion of adequate warranty clauses and liability protections. The warranties you offer and the extent of your liability should be specifically outlined based on the services you provide. Generic warranties and liability limitations from templates just won’t cut it. If your legals are not properly tailored to your industry and specific service offerings, you leave yourself open to potential legal issues.

4. Enforceability

Last but by no means least, enforceability is a critical aspect that templated legals frequently lack. It's all well and good to have legal documents, but if they’re unenforceable, they’re as good as useless. Key provisions might be missing, or the sequencing might be incorrect, making it difficult to rely on these documents in disputes.

In the end, hoping for the best or sticking your head in the sand isn't a viable strategy when it comes to legal protection. Solid foundational documents are crucial to any business: you're not going to ask your builder to skimp on the foundation of your house to save a few dollars, so why do the same with your legals?

LINKS:
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Episode Website: https://tmsolicitor.com.au/rise-up-in-business-podcast/4-things-your-templated-legals-could-be-missing

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