Anyone selling goods and services in the present climate knows just how volatile the worldwide trading environment is right now.
Shortages of raw materials are creating supply chain issues and even energy availability is under threat, just two of the factors that are sending the costs of doing business spiralling.
And all against a backdrop of worldwide political and economic stability which, in the UK, has sent inflation soaring to over 10 per cent for the first time in decades.
Some would say things are even more volatile, currently, than the global economic crisis of 2007/8, or the COVID-19 pandemic, because there are so many different elements involved.
And this makes it a worrying time for companies which, with a run of bad luck, risk being potentially put out of business through no fault of their own.
However, if you’re a business owner the good news there are ways to protect yourself against such unforeseen events.
In fact, there has never been a more important time to establish cast-iron contracts for every business deal you engage in.
Important safety net
Byron Swarbrick, Senior Solicitor for James Legal, said contracts can help protect against every conceivable eventuality, to protect businesses in the best, and worst of times.
“In the current climate, it’s important to take a step back and think strategically about what could potentially go wrong. While you won’t be able to anticipate everything in such a fast-changing environment, we’d recommend you get really close to the news, including latest government announcements affecting your sector.
“You should be asking yourself questions like ‘is there likely to be geo-political instability in areas where I source my products from?’, ‘what are the latest predictions for inflation?’
“Any one of these things, has the potential to put you at risk of failing to deliver your products to your customers on time, or finding that the prices you’ve quoted just aren’t realistic by the time you’re ready to hand goods over because so much has changed in the wider world since you first quoted.”
A solidly drawn-up business contract can protect your firm from the unforeseen, through appropriate caveats that protect you against selling your goods too cheaply in a rising-cost environment, or even being sued by your customer because you’re unable to fulfil their order as promised.
“My colleagues and I have lots of experience of the kinds of problems which can arise. So, we can help businesses think outside the box and write terms into formal contracts with their customers, to protect against outcomes that can be potentially catastrophic otherwise, particularly in a situation like the present.”
If your business contracts could do with some tightening-up, contact Byron via 07969 998320 or Byron.swarbrick@jameslegal.co.uk for an informal discussion about your options.
What can a business contract protect you against?
Geopolitical change: Brexit is just one example of changes in political regimes which are affecting businesses’ ability to honour their usual delivery times. Again, you can give yourself some much-needed wriggle room
