Lubecka.Law Blog

We kicked off the production but the contract is still unsigned sounds familiar?

We are already manufacturing and planning the delivery of the first batches of the product, but the contract regulating all this is…still being negotiated.

Does this happen?

The business reality shows that such situations happen very often.

Don’t worry, this is not going to be a post about the five key reasons why it’s worth signing a contract before you start working together.

I know you know this, and that’s not the reason you’re in this situation.

You decided that it this is the best course of action.

In business, it is often the case that if we want to achieve something with someone, we have to act efficiently and, sometimes, reverse the logical and rational order of our actions.

This is not a hyper-optimal situation, but as the wise say, “it is what it is.”.

What should you keep in mind when things are already in motion but the contract is still “under negotiation”?

Calculate the risk

Doing things in reverse order must be preceded by an assessment of the risks involved.

If the business arguments favor completing a given contract despite protracted negotiations, assess the risks associated with signing the contract at a later date.

Agree on key points via email

This will reduce the risk of your agreements disappearing without a trace. Among many issues that need to be kept in writing, there are just as many that do not require this form. 

However, it must be possible to prove these, so if you agree on something vital with a contractor, confirm it.

 

Before you release a key product or service, try to finalize the contract

Have you started working without a signed contract? 

At this stage, it is still possible to justify it but, before your contractor receives the key product or service, finalize the paperwork.

Nurture the business relationship with your contractor

Having good business relationship with your contractor is just as important as the contract itself and the quality of what you sell.

It is worth taking care of the mutual collaboration, not only when operating in uncertain conditions.

And in these specific conditions, it can definitely help.

 

Draw conclusions and improve going forward

Don’t make working without a signed contract your standard practice.

This is not best practice and should not be encouraged. Analyze what happened that made it necessary this time and determine what you can do to prevent it from happening again.

Joanna Lubecka
attorney

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