Contract law know-how can prevent business disaster, suggests legal expert

Investing in contract law training can pre-empt an array of business woes, according to one legal expert.

Chatting with business specialists at the Cambridge Network, contracts solicitor Allis Karim outlined some of the common problems that crop up in organisations which have not implemented such development.

Not putting contracts in writing was the first he suggested, followed by placing too much trust in other parties.

"In my experience, when someone assures you not to 'worry about the money' that's when you need to start worrying about the money," Mr Karim quipped.

He went on to advise against using family and friends as advisers in favour of the "frankness and objectivity" of professionals, while all outstanding corporate debts should be pursued sooner rather than later.

Regarding the practice of setting up an enterprise with intimates, he observed: "Friends are friends and business is business. Never confuse the two. Remember that in business it's friends today and litigants tomorrow."

Further difficulties identified by Mr Karim - to be avoided via thorough contract law training - include the repercussions of signing contracts under pressure or without taking time to read them carefully.

On the plus side, he concluded, individuals versed in contract law can draw up their own "safe" documents.