Anyone selling goods and services in the present climate knows just how volatile the worldwide trading environment is right now.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
However, if you\u2019re a business owner the good news there are ways to protect yourself against such unforeseen events.<\/p>\n\n\n\n
In fact, there has never been a more important time to establish cast-iron contracts for every business deal you engage in.<\/p>\n\n\n\n
Important safety net<\/strong><\/p>\n\n\n\n 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.<\/p>\n\n\n\n \u201cIn the current climate, it\u2019s important to take a step back and think strategically about what could potentially go wrong. While you won\u2019t be able to anticipate everything in such a fast-changing environment, we\u2019d recommend you get really close to the news, including latest government announcements affecting your sector.<\/p>\n\n\n\n \u201cYou should be asking yourself questions like \u2018is there likely to be geo-political instability in areas where I source my products from?\u2019, \u2018what are the latest predictions for inflation?\u2019<\/p>\n\n\n\n \u201cAny 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\u2019ve quoted just aren\u2019t realistic by the time you\u2019re ready to hand goods over because so much has changed in the wider world since you first quoted.\u201d<\/p>\n\n\n\n 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\u2019re unable to fulfil their order as promised.<\/p>\n\n\n\n \u201cMy 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.\u201d<\/p>\n\n\n\n