You’ve spent weeks hammering out a fantastic deal with a new supplier. The terms are ironclad, the pricing is perfect, and it stands to boost your business significantly. Everyone signs, there’s a celebratory handshake, and you file the contract away, breathing a sigh of relief. Months later, a dispute arises. The supplier claims they never agreed to those terms, or worse, that your signature is a forgery. Suddenly, that fantastic deal is about to turn into a costly legal nightmare.
This scenario is more common than you might think, and it’s precisely why notarizing contracts can be a vital step for small business owners. Let’s explore why.
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What Does a Notary Actually Do?
A notary public is an impartial witness commissioned by the state. Their main job is to:
- Verify Identities: Notaries carefully check government-issued identification to ensure that everyone signing a document is who they claim to be.
- Witness Signatures: They witness the actual signing of the document, making it difficult to later claim that a signature is invalid.
Why Notarize Your Contracts?
- Enhanced Legal Protection: A notarized contract carries extra weight in court. If a dispute arises, the notary’s seal and record act as strong evidence that your agreement was signed legally and without coercion.
- Deterring Fraud: Knowing a document will be notarized can discourage people from trying to forge signatures or alter the terms after the fact.
- Peace of Mind: Notarizing important contracts ensures that the legal foundation of your deals is secure, letting you focus on running your business instead of worrying about potential disputes.
When Do You NEED to Notarize?
While most contracts don’t legally require notarization, there are several situations where it’s essential:
- Real Estate Transactions: Deeds, mortgages, and other real estate documents nearly always require notarization.
- Wills, Trusts, & Powers of Attorney: These sensitive documents establish important rights and responsibilities, so notarization ensures their validity.
- Affidavits: These sworn statements often used in legal proceedings must be notarized to carry legal weight.
But What About Other Contracts?
Even if your contract doesn’t fall into a “must notarize” category, think of it as insurance. For important agreements like:
- Long-term Supplier Contracts
- Partnerships or Joint Ventures
- Intellectual Property Licensing
…that extra layer of notarization can potentially save you enormous headaches and legal costs down the line.
Finding a Notary Public
Notary services are readily available and affordable. You can often find them at:
- Banks
- Law Offices
- Shipping and Mail Centers
- Online Notary Services (for digital documents)
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A Small Step, Big Protection
As a small business owner, you pour countless hours into building relationships and hammering out beneficial deals.Notarizing your contracts is a simple, proactive step that brings a higher level of security to these crucial agreements. It’s about safeguarding your business interests so you can focus on growth, not legal battles.
Disclaimer: Please note that this article provides general information and should not be considered legal advice. Laws and regulations regarding notarization can vary between states. Always consult with an attorney for specific guidance on your business contracts.
