![\"Front](\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/03024102\/LegalVision_UK-Supplier-Contracts-Checklist.jpg\")
\n Download this free Supplier Contracts Checklist to ensure your contracts will meet your business\u2019 needs.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n You could find yourself engaging in lots of back-and-forth correspondence with customers who need clarification about what your contracts mean. This could require significant time and resources. In the worst case, disgruntled customers who do not have time may walk away from doing business with you if your contracts are too convoluted. <\/p>\n\n\n\n You can prevent these issues by presenting your contracts in clear and plain language so customers understand where they stand. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
Contracts are vital documents to protect you from risk as a supplier. Whether you should avoid legalese in your contracts will depend on various considerations. <\/p>\n\n\n\n
Critical Issues<\/h2>\n\n\n\n1. Do You Need Legalese for Specific Contract Purposes?<\/h3>\n\n\n\n
As a supplier, there might be situations where your contracts require specific legal language to allocate risk and protect your business.<\/p>\n\n\n\n
For example, the phrase \u2018time is of the essence\u2019 is a specific legalese phrase that offers remedies if a time-bound obligation is breached. However, as a supplier, this wording might be vital. For instance, stating that time is of the essence regarding a customer\u2019s obligation to pay could mean you have various remedies for late payment. <\/p>\n\n\n\n
Other favourable legalese wording could include clauses such as:<\/p>\n\n\n\n
- \n
- a force majeure clause\u2014while this sounds like legalese, it relieves a supplier of obligations if outside events prevent contractual performance, such as storms or floods;<\/li>\n\n\n\n
- an indemnity clause \u2013 an indemnity clause often uses complicated legalese wording. However, allowing a supplier to recover losses and damages from a customer in certain circumstances can be necessary. For instance, when the customer unlawfully shares personal data with the supplier, the supplier is penalised for using such data. <\/li>\n<\/ul>\n\n\n\n
As such, certain parts of your supplier contracts may require specific legalese for particular circumstances to protect your business from risk. However, you should consider using legalese sparingly for the reasons explored below. <\/p>\n\n\n\n
2. Will Legalese Cause Confusion and Legal Disputes?<\/h3>\n\n\n\n
In today\u2019s increasingly modern world, businesses tend to move away from traditional legalese and prefer plain language for clarity. <\/p>\n\n\n\n
Confusing and complicated legal language can lead to mismatched expectations, such as customers failing to understand specific contractual terms and what they mean. In the worst case, arguments over the legal interpretation of contract clauses can lead to time-consuming and stressful contractual disputes. <\/p>\n\n\n\n
While lawyers can understand complex legal language, your team or customers may not. You should be aware that excessive legalese could result in confusion, which could give rise to various risks for your business. Your business should take measures to avoid potential disputes, which requires careful consideration of your contract terms and ensuring they do not confuse customers. <\/p>\n\n\n\n
3. Will Legalese Risk New Business Opportunities?<\/h3>\n\n\n\n
Excessive legalese could result in complications and convoluted negotiations with potential customers. <\/p>\n\n\n\n
For instance, complicated legal language in contracts could foster a sense of mistrust, particularly with customers without legal knowledge or legal teams to review contracts on their behalf. <\/p>\n\n\n\n