In today's digital world, finding sample contracts, employment agreements, policies etc., online is easier than ever. For SMEs operating on tight budgets, downloading a free template and adapting it to suit their needs may seem like a practical and cost-effective solution.
But have you ever thought:
· Am I legally entitled to use it?
· Will it protect my business?
1. Not every template is free to use
Just because a document is available online does not mean it is free from copyright restrictions. Are you aware that some templates are protected by copyright or subject to license conditions that restrict copying, modification or commercial use?
Your business could be exposed to potential copyright infringement claims by using the templates without the necessary permission.
2. One size does not fit all
A contract or policy downloaded from the internet could have been drafted for an entirely different industry, or different business model and may not suit your business. Furthermore, the laws and regulatory requirements differ between jurisdictions.
A generic employment contract, for example, may omit important provisions relevant to your business requirements. Similarly, a website privacy policy may fail to address your actual data collection and processing practices.
What appears to be a professionally drafted document may therefore contain unsuitable, outdated or even unenforceable clauses.
3. Are you protected if any dispute were to arise?
The real value of a legal document is not how professional it looks, but whether it adequately protects your business when a dispute arises.
An incomplete contract may fail to address payment defaults, termination rights, confidentiality, liability or dispute resolution. A poorly drafted agreement could leave your business exposed when dealing with customers, suppliers, employees or business partners.
Worse still, if litigation arises, you may discover that the very document you relied upon does not provide the protection you assumed it did.
4. Prevention is better than litigation
SMEs do not necessarily need expensive, complicated legal documents. What they need are documents that are properly drafted, legally compliant and carefully tailored to their specific business operations and agreed terms.
Having a qualified legal professional review or draft your contracts, policies and other legal documents should not be viewed as additional costs as it is worth an investment in risk management.
Bottom Line
Saving money by downloading a free legal template may seem attractive today, but the cost of getting it wrong could be far more damaging to your bottom line and reputation.
Therefore, SMEs, before using a template, ALWAYS ask yourself:
· Is it legally usable?
· Is it suitable for my business?
· Will it protect me when I need it most?
Your business certainly deserves more than a copy-and-paste document.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. Businesses should seek independent legal advice on their specific circumstances before adopting or relying on any legal document.