When your California business winds up in a contract dispute, it may cost you time, money and more. Most contract disputes arise because of similar circumstances, such as misunderstandings between signing parties or the parties involved in the contract having different interpretations of the material inside. Even the most carefully drafted business contracts have the potential to lead to disputes. However, there are several preventative measures you might take to reduce their likelihood. 

According to Inc., to lower the chances of your company landing itself in a costly and time-consuming contract dispute, consider taking the following actions. 

1. Only sign contracts when a notary is present

Having a notary present when all parties sign a contract makes it almost impossible for anyone to say they never signed it if the case ends up in court. Furthermore, everyone who has to sign the contract may be more inclined to read it end-to-end when they know a notary is going to watch them sign it. 

2. Exercise good faith during negotiations

While you want to draft a contract that protects your business’s interests, you need to take care not to make unreasonable demands or conceal information that is pertinent to others signing it. Having a fair, equal contract from the get-go helps diminish the chances of a contract dispute. 

3. Make sure the proper parties sign the contract

Before signing a contract, make sure the other parties are who they say they are and that they have the legal authority to sign the document. Otherwise, the contact may become unenforceable in court.