Preventing Business Contract Disputes

Arizona Business Contracts: Mutual Intent is Key

Kindra Deneau: Part 1 Preventing Business Contract Disputes

Kindra Deneau: Part 1 Preventing Business Contract Disputes

In Arizona, the general rule is that written contracts with unambiguous terms stated therein are binding between the parties because it clearly evidences the mutual intent of the parties. Taylor v. State Farm Mut. Ins. Co., 175 Ariz. 148 (1993). 

Therefore, business contracts for any type of transaction should ALWAYS include a clearly stated time-frame for performance, completion and/or termination of obligations, and in most circumstances should include clearly defined expectations regarding quality. These provisions should be structured based upon on the needs of the contracting parties as well as the nature of the contract.

It is a very common, and sometimes a huge mistake for business owners and their representatives to leave out specific language regarding time-frame and quality. Without a clearly-stated time-frame for completion or expectation of quality, a court may take many factors into consideration to interpret the contract, which may result in an uncertain outcome.