Common Contract Mistakes That Could Cost You Thousands

Common Contract Law Mistakes

Running a business means dealing with contracts all the time — and let’s face it, most business owners don’t have time to read every line. But missing a small detail in your contract can lead to big, expensive problems later. Read on to learn about common contract law mistakes.

At Granfield Legal Services, we help small business owners avoid common contract mistakes and protect what they’ve worked so hard to build.
Let’s walk through the biggest errors we see — and how you can avoid them before they turn into a legal headache.

Person reviewing a business contract with a checklist titled 'Protect Yourself From Contract Mistakes,' highlighting common contract risks like unclear payment terms and missing dispute resolution clauses

1. Vague Payment Terms

When contracts don’t clearly define when and how payments are made, you’re setting yourself up for trouble.
Chasing down late payments wastes your time and energy — and can even lead to cash flow problems.

✅ Tip: Always spell out payment deadlines, accepted methods (like check, ACH, or credit card), and penalties for late payments.

2. No Exit Strategy (Termination Clause)

Business relationships don’t always work out. Without a clear way to end a contract, you might find yourself stuck in a bad deal.

✅ Tip: Add a termination clause that explains exactly how and when either party can end the agreement.

✅ Example: Specify how much notice must be given and if any penalties apply.

3. Missing Dispute Resolution Terms

If your contract doesn’t explain how disputes will be handled, you’re opening the door to expensive lawsuits.
Litigation can take months — and cost thousands.

✅ Tip: Include a dispute resolution section with requirements for mediation or arbitration before going to court.

4. Undefined Deliverables

If your deliverables are vague (“provide marketing services”), disagreements are almost guaranteed.
Clear deliverables protect both you and your client.

✅ Tip: Be as specific as possible. List services, timelines, project milestones, and responsibilities.

5. No Liability Limitations

Without limiting your liability, you could be on the hook for far more than you intended if something goes wrong.

✅ Tip: Include clauses that cap your financial exposure and protect you from unforeseen claims.

Why These Common Contract Mistakes Are So Costly

Small errors can have big consequences:

Delayed or lost payments
Breach of contract lawsuits
Damaged business reputation
Missed growth opportunities

Taking a little time now to get your contracts right saves you time, money, and stress later.

📋 Free Bonus: Your Contract Checklist

Most common contract mistakes aren’t obvious until it’s too late.
Don’t take chances with your next deal.

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At Granfield Legal Services, we specialize in helping individuals and businesses across New Hampshire and Massachusetts avoid costly contract mistakes. Whether you’re signing a new agreement, drafting custom terms, or reviewing a contract you’re unsure about, we can guide you through the process with confidence.

✅ We offer free initial consultations to review your situation and help you protect your interests.

👉 Book your free consultation today and make sure your contracts are working for you — not against you.

👉 Download your FREE checklist: The 5 Most Expensive Contract Mistakes — And How to Avoid Them

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