With the rise of virtual companies, many online document services have popped up to offer people a seemingly effortless way to handle legal forms and paperwork. Since business owners constantly look for ways to save time and money, getting business contracts from these enterprises might appear to be a convenient solution.
However, these services can hold pitfalls for businesspeople who are not careful. The following information explains the circumstances when an online legal document service may not be a good idea.
Lack of personalization
Online document services have limitations that a legal professional does not have with a client. For example, while these companies can offer generic forms, these businesses cannot offer specific legal counsel. Document services that provide legal advice violate the law and can be subject to criminal and civil action.
Legal professionals and firms can help clients draft contracts that address specific situations and alert a client about unfavorable terms or clauses. While certain business practices may seem standard, every situation is different. A small oversight could prove costly later.
Complications with enforcing terms
Parties to a contract should be able to rely on the enforceability of an agreement. However, states have distinct rules surrounding different practices. For example, noncompete clauses may be permissible in one state and unenforceable in another.
When entering a contract with an entity operating in a different state or country, a person may need to consider numerous factors that can affect the document’s validity. Unfortunately, an online document service cannot guarantee the effectiveness of its contracts and will not defend these agreements in court on behalf of a client.
A business is a valuable possession, and contracts must be reliable to protect a company. For critical deals and ventures, an online document service can present challenges to businesspeople.