Signing a contract is something most businesses do regularly. Whether you are taking on a new client, appointing a supplier, entering into a partnership or purchasing services, contracts are at the heart of commercial relationships.
Despite their importance, many business owners sign contracts without fully understanding what they are agreeing to. Legal terminology, lengthy clauses and complex wording can make contracts difficult to interpret, particularly for small businesses without an in-house legal team.
Artificial intelligence is beginning to change this. Legal AI platforms now allow businesses to ask questions about contracts and gain a clearer understanding of legal terminology before making important decisions.
However, can AI really help you understand a business contract, and where does a solicitor fit into the process?
Why Do Businesses Struggle With Contracts?
Many contracts are drafted to protect the party who prepared them. This means they often contain clauses that limit liability, impose strict obligations or favour one side in the event of a dispute.
Business owners commonly ask questions such as:
- Can I cancel this contract?
- What happens if the other party breaches the agreement?
- Am I accepting unlimited liability?
- Is this termination clause fair?
Unfortunately, many people only ask these questions after signing the agreement.
Understanding contractual terms before signing allows businesses to negotiate from a stronger position and avoid disputes further down the line.
How Can NakdLaw Help?
Rather than searching multiple websites or relying on generic AI tools, businesses can now ask legal questions through NakdLaw, an AI-powered legal platform built specifically to help users better understand the law.
What makes NakdLaw different is that it is built using the knowledge, materials and expertise of practising lawyers, with every answer checked and moderated by lawyers. This means users receive guidance based on genuine legal expertise rather than generic internet content.
Business owners can ask practical questions such as:
- Can I terminate this contract?
- What is an indemnity clause?
- What happens if a customer doesn’t pay?
- What does this clause actually mean?
NakdLaw is designed to explain legal concepts in plain English, helping businesses understand the legal principles behind a contract before deciding what to do next.
Importantly, NakdLaw is not designed to replace solicitors. Instead, it helps businesses become more informed so they know which questions to ask and whether professional legal advice is needed.
When Should You Speak to a Solicitor?
Although AI is transforming access to legal information, there are many situations where tailored legal advice remains essential.
If a contract involves significant financial commitments, complex commercial arrangements or a dispute has already arisen, a solicitor can provide advice based on the specific facts of your case.
The combination of legal AI and professional legal advice offers businesses the best of both worlds. NakdLaw provides accessible, lawyer-informed guidance to help you understand legal issues, while Penerley’s experienced commercial solicitors can provide bespoke advice, negotiate contracts and represent your interests where necessary.
Need Help With a Business Contract?
If you have questions about a commercial contract, start by asking NakdLaw to better understand your legal position. If you require tailored advice or contract drafting, Penerley’s commercial law team is here to help.
The second article on cohabitation agreements would follow the same style, with NakdLaw as the main focus and Penerley as the legal experts for drafting and advice. I think these will work really well together as a content series.
