When it comes to running a business, the legal side of things often falls into the “I’ll deal with it later” category, until, of course, it’s too late. That’s exactly why we launched The Hybrid Legal Loop, a talk show-style video series where we break down legal essentials in a way that’s actually useful (and not just a load of legal jargon).
In our first episode, Smart contracts, stronger business: Avoid costly legal mistakes, I sat down with Ollie Harvey, Senior Commercial Solicitor from Hybrid Legal to chat about the most common legal pitfalls business owners face, and more importantly, how to avoid them.
Here are some of the key takeaways:
If it’s not in writing, it might as well not exist
One of the biggest mistakes businesses make? Relying on handshake deals and verbal agreements.
As Ollie put it:
“A contract isn’t just there for when things go wrong; it sets expectations from day one.”
Getting agreements in writing – whether with clients, suppliers, or employees – helps prevent misunderstandings and protects your business when things don’t go to plan.
“If it’s not in writing, it might as well not exist. Without a proper contract, you have no real legal protection.”
A well-drafted business contract sets out terms clearly, reducing the risk of disputes and ensuring both parties know their responsibilities.
AI-generated contracts: quick fix or risky gamble?
With AI tools making contract creation faster than ever, it’s tempting to rely on them to save time and money. But as Ollie pointed out: “AI can generate a contract in seconds, but it won’t necessarily be the right contract for your business.”
AI-generated contracts might cover the basics, but they often miss key details that protect your specific interests. A contract needs to be more than just legally valid, it should reflect your business, your risks, and your goals. Cutting corners here could lead to bigger headaches down the line.
Employment contracts: more than just a box-ticking exercise
Bringing on employees? It’s easy to think a generic contract from the internet will do the job, but that’s a risk not worth taking.
“A solid employment contract isn’t just about legal protection – it’s about clarity and fairness from the start.”
Custom contracts tailored to your business help set expectations and avoid messy disputes later down the line.
Don’t wait until there’s a problem to think about legal stuff
Many businesses only seek legal help when they’re already in trouble, and by then, it’s often more expensive and stressful to fix.
“Proactive legal protection is an investment, not an expense. A little bit of prevention now can save you a whole lot of headaches later.”
Getting legal foundations in place early means you can focus on growing your business with confidence.
These are just a few of the gems from our chat, there’s plenty more where that came from, including:
- Can you form a contract over email?
- How to handle late payments
- Managing ‘scope creep’ in contracts
- Intellectual property (IP) ownership pitfalls
- The dangers of ‘penalty clauses’ in contracts
- What in-house legal teams at big companies look for.
If you want the full lowdown, watch the full episode of The Hybrid Legal Loop here: https://youtu.be/AyW-L1uGEWc?si=raKXbDMOTqWWxsbV
Got any legal questions or want to chat about getting your own ducks in a row? Get in touch
Ryan has helped a vast number of businesses protect and control their intellectual property as well as drafting and advising on consumer and commercial contracts.
