Avoiding Costly Contract Mistakes: What Atlanta Small Business Owners Overlook

Too many Atlanta small business owners rely on handshake agreements or online templates to save time and money. While that approach might feel practical, it can expose your company to disputes, hidden liability, and unenforceable terms. 

Glenn Lyon of MacGregor Lyon sees it every day: entrepreneurs who thought a generic template or an oral promise would be “good enough” until something went wrong. A contractor refuses to finish a job, a client won’t pay, or a partner wants out. Suddenly, the missing clause or unclear language becomes a costly problem.

Solid contracts aren’t about adding red tape. They’re about clarity. They give both sides a clear roadmap, reduce misunderstandings, and provide leverage if conflict arises. Let’s look at some of the most common mistakes Atlanta business owners make in their contracts, and how you can avoid them.

Vague Payment Terms Lead to Unpaid Work

Payment disputes are the number one contract issue that drags Atlanta business owners into court. Too often, contracts simply say “Net 30” or “due upon receipt” without defining what happens if the other party ignores the deadline. That vagueness creates an opening for delay, excuses, and months of chasing money that should already be in your account.

Strong payment provisions remove uncertainty. A contract should spell out the exact amount owed, the due date, and the method of payment. It should also explain what happens if a payment is late. Will there be a percentage penalty? Daily interest? Suspension of services until the account is current? Without these details, your leverage is limited, and Georgia courts may rule the contract unenforceable if terms are ambiguous.

For service businesses, milestone payments can also make the difference between staying afloat and running dry. If you’re delivering work over a six-month project, you shouldn’t be waiting until the end for a lump sum. Clear stages—such as “25% upon signing, 50% halfway through, 25% on delivery”—ensure that you’re not financing the project out of your own pocket.

Missing Termination Clauses Trap You in Bad Deals

Atlanta’s small business community thrives on relationships, but relationships sour. A partnership that looks promising today may become unsustainable tomorrow. Without a termination clause, you may have no way out without paying heavy penalties or breaching the agreement.

A well-crafted termination clause should answer three key questions:

1. When can you walk away? Contracts can allow termination “for cause” (such as failure to perform) or “for convenience” (no reason needed, just notice).
2. How much notice is required? Thirty days is common, but high-stakes partnerships may require more.
3. What obligations survive termination? Think about confidentiality, outstanding invoices, or returning property.

Consider the example of a local restaurant that signed a multi-year supply contract without a termination clause. When the supplier repeatedly missed deliveries, the restaurant was still locked in—and had to pay lawyers to negotiate an expensive exit. That risk could have been avoided with a two-sentence clause.

One-Sided Indemnity Clauses Create Hidden Liability

Indemnity provisions are often buried deep in the fine print, but they can make or break your business if a dispute arises. An indemnity clause requires one party to cover the other’s losses, legal costs, or damages. In practice, that can mean you’re footing the bill for problems you didn’t cause.

Large vendors and clients often draft contracts that shift nearly all liability to the smaller party. For example, a marketing consultant might sign a contract requiring them to “indemnify, defend, and hold harmless” the client for any claims related to the project. If the client’s website is hacked—even due to their own poor security—the consultant could still be on the hook for damages.

Fair indemnity clauses limit responsibility to what’s actually within your reasonable control. They might cap liability to the amount paid under the contract, exclude damages caused by the other party’s negligence, or require each party to cover their own attorneys’ fees. Negotiating these points can feel intimidating, but leaving them unchecked could sink your company in one lawsuit.

Templates and Handshakes Miss the Bigger Picture

Atlanta’s startup culture runs on speed, and entrepreneurs often use templates they find online to avoid slowing down. But contracts copied from other states or industries often contain provisions that don’t match Georgia law. Worse, they usually leave out the clauses that matter most to your business.

Handshake deals are even riskier. Oral promises are difficult to enforce in court, and memories fade or differ. Without a written record, you may end up litigating not just the terms of the agreement, but whether there was an agreement at all.

Here are some common problems with templates and handshake agreements:

• Choice of law issues: Templates may default to Delaware or California law, creating unnecessary hurdles for a Georgia business.
• No dispute resolution framework: Without arbitration or venue clauses, you could find yourself dragged into an out-of-state lawsuit.
• Missing protections: Confidentiality, non-solicitation, and intellectual property ownership often go unaddressed.

Every business has unique risks. A software startup in Midtown needs clear IP ownership provisions. A construction firm in Gwinnett needs indemnity clauses tailored to on-site risks. A retail shop in Buckhead needs lease agreements that account for local zoning and landlord relationships. Templates and handshakes can’t deliver that nuance.

Preventative Legal Review Saves Money

Many small business owners see legal review as a cost. In reality, it’s an investment in preventing far greater expenses down the road. Disputes cost more than legal fees—they drain time, strain relationships, and distract you from running your business.

Preventative review ensures:

• Terms are clear, enforceable, and compliant with Georgia law
• Risk is balanced, not one-sided
• You’re not unknowingly signing away valuable rights

When you work with MacGregor Lyon, you don’t just get documents checked. You get plain-English guidance on what your contract actually means for your day-to-day business decisions.

Protect Your Business Before Problems Start

Contracts are the foundation of your business relationships. If they’re vague, incomplete, or unfair, you’re building on shaky ground. Don’t wait for a conflict to find out where the cracks are.Contact MacGregor Lyon right now to schedule a consultation. We’re located in West Midtown. Let’s protect what you’re building and give you the confidence to grow your business with strong, enforceable agreements.