A management contract is a document that vests control of a business in a separate individual or entity in exchange for a fee. A management contract may cover a wide range of responsibilities, including accounting, personnel management, production, marketing and training. A management contract is a way for a business person to allow another person with experience in an industry to manage the daily operations of a company or facility.

When there are problems with a management contract, the dispute can cause confusion, frustration, lost profits and may potentially result in one or both parties to the contract filing a lawsuit. Ending up on the wrong side of a breach of contract lawsuit can be expensive since the other side may ask for punitive damages and attorney’s fees in addition to other damages authorized by law.

It is important to get a contract right before signing it. If there are any terms you do not understand, you may wish to consult a Bucks County PA business attorney. You can change terms in a contract if you do not want to agree to them. If you make changes by crossing out clauses and writing in conditions and then sign the contract and send it back to the other party, this is considered a counteroffer. It is a good idea to negotiate with the other side about important terms while the contract is being drafted.

Philadelphia business attorneys may be able to help clients with management agreements by making sure that terms are reasonable and favorable to their client and that the contract terms are enforceable in a court of law. An attorney can advise their clients about the meaning of legal terms in the contract. Contact one of our business lawyers in Philadelphia for more information about negotiating and drafting management agreements.

Having an attorney on your side can make the negotiation process much simpler and may help prevent a court battle later on.