Q1. Why are contract clauses so important for small businesses?
Each clause can shift risk and responsibility. Even short “standard” agreements often contain terms that heavily favor one side. Reviewing key clauses—like termination, indemnity, confidentiality, and arbitration—helps prevent costly misunderstandings later.

Q2. What does a termination clause do?
It defines how and when each party can end the agreement. Some contracts allow termination for any reason with notice, while others restrict it to specific events such as nonpayment or breach. Always check notice periods and any obligations that continue after termination.

Q3. What is an indemnity clause?
An indemnity clause determines who pays if a third party brings a claim related to the contract. Broad wording like “any and all claims” can expose your business to risks outside your control. Favor balanced, mutual indemnities that align with your insurance coverage.

Q4. What should I look for in a confidentiality clause?
It should clearly define what information is confidential, who can access it, and for how long. Include sensible exceptions—like information already public—and set a reasonable duration, typically two to five years after the agreement ends.

Q5. What does an arbitration clause mean for me?
It requires disputes to be resolved privately by an arbitrator instead of in court. Arbitration can be faster and more confidential but may limit your appeal rights and add costs. Evaluate whether it’s mandatory and where the arbitration would take place.

Q6. How do I manage contract risk overall?
Identify high-risk clauses early, review unfamiliar terms with counsel, and ensure your insurance matches your contractual obligations. Keep organized records of all signed contracts, amendments, and notices.

Q7. How can Good Pine P.C. help?
We advise businesses across New York and New Jersey on contract drafting, negotiation, and enforcement. Our work includes reviewing key risk provisions, negotiating fair terms, and resolving disputes through negotiation, arbitration, or litigation.