Contracts are an integral component of doing business in Houston. Contractual breaches can be very damaging in this case, so it is important to be on the lookout for any potential red flags. While you cannot always avoid contractual issues, the following information from can help you make the best decisions about your business.

If your contract includes non-compete clauses, it is worth giving them a thorough review. Non-compete clauses can be hard to enforce in some situations, which is why they should be added to a contract carefully and only when applicable. If you must include a non-compete clause, make sure that it is well defined so that it is enforceable. If you are unsure, schedule a consultation with an attorney for further insight.

Penalties should also be stated in the event that one or both parties breach the terms of the contract. Penalties should be appropriate to the offense and should also be explicitly stated. Some contracts also include a cool down period. This is useful in the event of a missed deadline or another issue. Instead of immediately reverting to litigation, the cooldown period allows both parties to make the issue right to prevent legal issues from occurring.

You also want to ensure that pricing matters are thoroughly explained and meet the agreed upon figures. Additionally, make sure the timelines for payment are spelled out. Will you be paid based on work completed or according to a payment schedule? Most breaches involve money in some respect, and it is never advisable to sign a contract that is not complete. Hashing out these details before you agree to the terms can prevent significant contract breaches from occurring.

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