Contracts 101
How a provider lawyer can help you
At some point, any business owner is likely to have contract legal questions. If you join LegalShield, you’ll be able to consult with a lawyer on contract issues. Don’t stress about contract law—call your provider lawyer.

Protect your business with legally sound contracts
75% of small business owners are concerned that they may be the target of a frivolous lawsuit and small businesses with revenue of a million dollars spend an average of $20,000 a year dealing with lawsuits.
One of the best ways to protect your business is to make sure all the contracts you sign with customers, vendors and other third parties are drafted correctly, follow the law and will be enforceable should you end up in front of a judge.
The best way to make sure your agreements are in order is to work with a lawyer that has experience with the most common types of documents small businesses need.
Get legal advice prior to signing agreements
Nobody likes reading contracts as they tend to contain language that is confusing and hard to interpret. That said, it’s important for the success of your business that you understand what you’re signing.
- Are the terms fair?
- Are your rights protected?
- Do you have adequate coverage for your intellectual property?
- Would key terms of the deal be enforceable in court?
Whether you drafted an agreement or you’ve been presented with a document you need to sign, an experienced lawyer can quickly assess the situation and provide advice on how to proceed.


Get legal support for enforcing an agreement
Once a contract has been breached, the parties may try to settle the situation on their own. When that does not work, lawyers may have to get involved. Here are several scenarios in which you may want the advice and representation of a reputable contract lawyer.
- A customer has failed to pay fees due under your service agreement
- An employee has breached the terms of your employment agreement
- A landlord claims you have breached your lease agreement
- A relationship with a vendor has gone sour and there is a financial dispute
If you find yourself in a sticky situation that involves a contract, the best move is to contact a lawyer to at least get advice about your rights and to determine the next best steps.
3 common contract situations
Whether you need to draft an employment contract, sign a lease for office space or demand a customer pay you under an existing service agreement, it’s important to understand the contract terms, the relevant law, and your rights. When people enter into a contract, both parties hope the relationship goes smoothly. However, in the event that something goes sideways, knowing the documents you sign are drafted correctly, fair to both parties and enforceable can reduce stress.
Drafting contracts
If you need a new contract drafted, you have three main options.
- You can download a template from the internet that’s relevant to your situation and fill in the details. The problem with this approach is that you may not be sure how good the template was in the first place or whether you filled it out correctly.
- You can hire a lawyer to draft it for you. If you hire an experienced contract lawyer, you’ll be confident that your agreement is legally sound. However, business lawyers charge between $150-$400 per hour and small businesses may struggle to afford such fees.
- You can download a template from a reputable website, fill it out and then have a business lawyer review your document to make sure you followed the law and have adequately protected your rights. For most situations, this option is the most cost effective way to get the protection you need at a price your business can afford.
A small business plan from LegalShield gives you access to lawyer drafted templates and the ability to consult with a business lawyer anytime you need advice. Also, you can submit business documents (up to 50 pages depending on plan) for review.
Signing contracts
When you need to sign a contract on behalf of your business, you want to be confident you understand the terms and what you’re agreeing to. Here are a few areas to pay close attention to:
- Are the financial terms fair to you?
- Are you clear about the length of your commitment?
- Do you understand your agreement and your options for terminating the agreement early?
- Is there anything in the agreement that would make it unenforceable should you have to go to court?
- What changes should you request before signing?
- Are there any deal breakers?
- If the other party has requested changes, should you agree to their requests?
Rather than stress and guess, it’s best to have a lawyer review the agreement before you sign on the dotted line. This way you’ll be sure you are making the right moves for your business.
If you’d like help, join LegalShield today.
Enforcing contracts
When someone breaches a contract, enforcement and resolution is based on three elements.
- The first step is to read the contract terms that apply to the breach in question and determine what the document dictates the resolution should be. Is the agreement simply terminated? Does one party owe the other party penalties? The terms tell the story.
- Another aspect of contract enforcement relates to the conduct of the parties after the initial breach. For example, it’s common to require the party that has been harmed to notify the other party of the breach within a specified period of time. Fail to follow the terms and the aggrieved party may have waived its right to enforce the contract.
- The final element is of course the law itself. While private parties can generally agree to whatever contract terms they want, contracts cannot violate any laws. Also, if any terms of the contract are confusing or contradictory, contract law and past case law may be used to settle the dispute.
Whether you are trying to enforce a service contract with a customer or a landlord is claiming you’ve breached your office lease, it’s best to discuss the circumstances with a lawyer and have them review the agreement before taking action. It’s important that you get legal advice as soon as possible so you don’t inadvertently waive any of your rights or nullify the contract.

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Frequently Asked Questions
Skip the hourly legal bills. Starting at $59/month, get access to an experienced provider law firm who can handle a wide range of legal needs—without the stress of unpredictable costs. From consultations and document checks to drafting debt collection letters and trial defense hours for defending your business in the event of a covered lawsuit or IRS audit, the LegalShield Small Business Plans have services available. Even using it once can save you thousands.
Getting help is easy. Sign up, and our team will connect you with a vetted law firm that can help with small business issues. Plus, our simple app puts your legal benefits and MEMEBERPerks right at your fingertips—anytime, anywhere.
LegalShield small business plans cover many day-to-day legal needs that small businesses encounter, including consultations, document reviews, and collection letters—at no extra cost.
Certain matters, such as issues outside your business state, are included only on specific plan tiers. If your situation isn’t fully covered—whether it’s out-of-state support or a specialized legal matter—your provider law firm can still help through our Member Discount, giving you savings off their standard hourly rates.
Members receive access to experienced lawyers from a provider law firm in their state. LegalShield connects members with these firms, but all the legal advice is provided directly by a licensed lawyer.
Prevention First
- Lawyers can help check contracts, research legal questions, and flag issues before they become expensive problems.
Professional Legal Assistance
- Lawyers can send letters, make calls, and represent the business in certain situations.
Yes, we have vetted licensed law firms available in every state.
Small businesses across a wide range of industries can benefit from our services. This includes consultants, contractors, retailers, service providers, startups, freelancers, and growing companies. Running a small business means making legal decisions all the time — contracts, compliance, customer issues, and more. LegalShield Small Business plans give businesses of all kinds affordable access to experienced lawyers who can answer questions, review documents, and step in when needed, so you don't have to handle legal issues alone or worry about unpredictable hourly legal fees.
Business owners can get help with a wide range of legal topics, including contract questions, business formation, compliance requirements, vendor and customer disputes, and employee-related issues.
The lawyers can review a wide variety of business documents, including vendor agreements, client contracts, leases, service agreements, NDAs, and partnership agreements. They’ll examine the document before you sign and help identify potential risks, unclear terms, and important legal considerations.
Employees can communicate with the lawyer only if they are listed as designated spokespersons on the account.
If you need legal support beyond what’s included in your plan, you can continue working with your provider law firm at a discounted rate. Members receive the following discounts on additional services:
- Small Business Basic Plan: 15%
- Small Business Preferred Plan: 20%
- Small Business Premium Plan: 25%
All LegalShield Small Business plans include legal advice and consultation for landlords. If your rental property is located in a different state, you’ll need a Small Business Preferred Plan or Small Business Premium Plan to receive services beyond consultation.
A provider lawyer can also:
- Conduct legal research
- Send letters or make phone calls on your behalf of your business
- Review property-related documents
This ensures you have the legal support you need to manage your rental business with confidence.
All LegalShield Small Business plans include advice and consultation on partnerships.
A provider lawyer can also:
- Conduct legal research
- Review partnership-related agreements
Business owners can unlock extra benefits if they:
- Have both a LegalShield personal legalplan and a LegalShield Small Business plan
- Activate Business Owner coverage in their account
Once activated, the Business Owner can receive phone consultations, document reviews, IRS audit support, and trial defense hours for personal legal matters related to their business—things that are normally excluded. These services still follow the limits of the personal plan, but the usual business exclusion is waived.
Yes. After signing up, you’ll need to activate the business owner benefit in your account.


