If you read this blog regularly, you know I always blab on and on about why you should have agreements in writing. And you’ve read the horror stories. This week, I was approached by not one, but two potential client who had their agreements in writing, but faced problems because those agreements did not comply with Louisiana law.
The first contract was a small business’ employment agreement. The business owner had taken the contract from a similar business in another state and asked the employees in Louisiana to sign it. The business owner is now having problems with one of the employees and wants to enforce the contract. Unfortunately, the clause of the contract that applies to this situation doesn’t exactly comply with Louisiana law, so whether or not the contract is enforceable is unclear. A quick contract review would have fixed this problem before it ever arose.
The second contract was a service agreement between a Louisiana small business and an out-of-state provider. The small business asked me to review the contract before they signed. Smart move. The contract was for services which are explicitly regulated by Louisiana statute. The contract was from the service provider’s home state, and didn’t comply with the Louisiana statute. The client was advised to not sign the contract, and asked the service provider to provider another one. This client had the foresight to have an attorney review the document first. Trouble averted.
I know that no one wants to have an attorney review every contract they sign. But when you sign a contract that doesn’t comply with Louisiana law, you may be signing up for more than you bargained for.