The dangers of using the wrong contracts

The use of incorrect or carelessly drafted contracts can have major consequences: from misinterpretation and invalid clauses to a completely void contract, unwanted obligations, and damage claims. Contracts form the basis of your business relationships, and one mistake can cost you dearly. Below, you will read about the main dangers and why you should have your contracts checked.

1. Misinterpretation of the agreements

If the agreements are not clearly formulated or if you use the wrong type of contract, the agreements made may be misinterpreted. This leads to misunderstandings and possibly a legal dispute. If the judge interprets the agreements differently than you intended, this can have unforeseen consequences.

2. Some of the agreements are invalid

In the event of errors, the judge may disregard certain provisions. If some agreements are invalid —for example, because they violate the law or because general terms and conditions are unreasonable—while others remain valid, an unequal relationship between the parties may arise.

3. The entire contract is void and unenforceable

If the contract is void in its entirety — for example, due to conflict with the law or public order and morality — then it is unenforceable. Neither party is required to abide by the agreements, and no rights or obligations can be derived from them. The situation must be restored to its original state, meaning, for example, that any advances paid must be repaid.

4. Unwanted, far-reaching obligations

A poorly drafted contract can saddle you with obligations that go beyond what you intended. Examples in the employment contract:

• Incorrect provisions regarding the duration can lead the judge to assume an employment contract for an indefinite period instead of a temporary one;
• an invalid probationary period clause, meaning you cannot simply terminate the agreement.

The consequence can be an undesirable, long-term employment relationship and far-reaching obligations.

5. Risk of damage claims

A poorly drafted contract can lead to damage claims if the other party suffers damage as a result. For example: a contract with a business partner requires you to protect confidential information, but an agreement with another partner lacks a confidentiality clause. If that partner leaks the information, you could be held liable.

Have your contracts checked by a lawyer

To prevent these dangers, have your contracts checked for validity, clarity, and completeness. A legal expert assesses whether you are using the correct contract and advises on risks and areas for improvement. With the ContractCheck™ from MKB Juristen, your contracts are checked on dozens of key points.

Frequently Asked Questions

What happens if part of my contract is invalid?

The judge may disregard the invalid provision, while the rest remains valid. This can create an unequal relationship between the parties.

Can an entire contract be void?

Yes, for example in the event of a conflict with the law or with public order and morality. The contract is then unenforceable and the situation must be rectified, for example by repaying advances.

Can an error in my employment contract have major consequences?

Certainly. An error regarding the duration or an invalid probationary period clause can lead to permanent employment or the inability to terminate the agreement.

How do I avoid problems with my contracts?

By using the right type of contract and having your contracts checked for validity, clarity, and completeness, for example with a ContractCheck™.

Are you unsure about your contracts?

Prevent misinterpretations, invalid clauses, and damage claims by having your contracts reviewed. We assess whether you are using the correct contracts and advise on areas for improvement.

View our ContractCheck™ or our expertise in contract law, and schedule a no-obligation intake consultation.