Inadequate Contracts Can Result In Serious Financial Loss, Confusion Between Parties & Many Other Issues
Nearly every seller will need some type of contract during the growth and operation of their ecommerce or Amazon business. In fact, some sellers enter into contracts on a regular basis, especially private label sellers who use contracts when sourcing inventory or transportation services. Every contract that you or your business enters into should be carefully drafted and reviewed to ensure that your business’s legal rights are protected, and that the contract does not create any unnecessary liability or extra cost for compliance. For example, some parties may want you to sign a “Personal Guarantee.” While a personal guarantee doesn’t sound scary, it can create personal liability for the person signing it, and therefore should be carefully reviewed and negotiated to limit its scope and applicability.
Many business owners do not know the principles of contract law, and may turn to Google or a “guru” for sample contracts. However, this approach is dangerous to your business, as these contracts rarely cover all the bases that are necessary to protect your business rights. Furthermore, these contracts may be based on a state law other than where you live, and therefore may contain clauses that are unenforceable in your state.
For these reasons, it is very important that you engage an eComAttorney that understands both Amazon and eCommerce when drafting contracts for your business. If you are presented with a contract, our experienced attorneys can evaluate the terms, recommend changes, and negotiate for terms that protect and benefit you. Additionally, if you already have a contract in place, and the other party is not upholding their obligations, our attorneys can review the contract and advise you of your rights to enforce the contract.