Corporate law

A badly drafted contract is not a small mistake: it can cost you everything you own

A badly drafted contract is not a small mistake: it can cost you everything you own

· Corporate law

A badly drafted contract is not a small error. It is the reason otherwise healthy businesses end up in litigation they cannot afford.

Where downloaded templates fail

They are written for a different legal system, they do not identify the parties correctly, and they omit the clauses that only matter when something goes wrong. The most common gaps we see:

Intellectual property. A contract with an agency, a developer or a designer that does not expressly assign the resulting work leaves the supplier owning it. Under Mexican copyright law an assignment must be in writing to be effective.

Termination. No mechanism to exit, no notice period, no consequences. Both parties are trapped or both walk away and argue about it.

Confidentiality and non-solicitation. Absent or unenforceably broad.

Dispute resolution. No governing law, no forum, no escalation, which means the fight starts with a fight about where to fight.

Payment. No default interest, no suspension right, no security.

The economics

Having a contract properly drafted or reviewed costs a fraction of one week of litigation. If a document governs money, intellectual property or a relationship you cannot afford to lose, have it read by someone before you sign it, not after.

See the original post

Leer esta publicación en español

Free, no commitment

Find out if your trademark can be registered

Four out of every ten marks that reach us cannot be registered as they stand. We search the IMPI database and send you a written opinion before you spend anything on official fees.

Prefer to write? Message us on WhatsApp.

Free guide

The 7 costliest mistakes when registering a trademark in Mexico

The seven that cost a business the most, with the legal basis for each. Leave your email and we send it now.

More on Corporate law


Previous Choosing the right company structure: the decision that avoids legal and tax risk Next Your logo has more power than you think: the seven types of logo and how each is protected