Contracts are the backbone of doing business in Brisbane—from hiring staff to securing suppliers to purchasing a company. But even a small oversight in a contract can snowball into disputes, financial losses, and long-term legal trouble.
Below is a practical, easy-to-follow guide on common contract mistakes and how Brisbane businesses can avoid them.
Related Service
Lexnode – Business & Commercial Law ServicesNot Reviewing Key Terms Thoroughly
Many business owners sign contracts without carefully reviewing critical elements that determine legal obligations and financial exposure.
Key Points:
- Payment schedules
- Termination clauses
- Liability limitations
- Indemnity provisions
- Dispute resolution procedures
Why it's risky:
Vague or unfair terms may leave you legally exposed even if you believe you're in the right.
Using Templates Without Legal Review
Online templates or recycled contracts often cause more harm than good for Brisbane businesses.
Key Points:
- Outdated legal references → Non-compliance with Queensland laws
- Generic clauses → No protection for your unique business
- Missing risk allocation → Increased chance of disputes
- Ambiguous language → Conflicting interpretations
Why it's risky:
Even small errors can cost thousands during a dispute or contract breach.
Failing to Clearly Define Responsibilities
Ambiguous wording like "Party A will support Party B as needed" is a legal time bomb.
Key Points:
- Exact deliverables
- Project timelines
- Performance standards
- Penalties for delays
- Responsibility for unexpected costs
Why it's risky:
Without clarity, courts may interpret the contract in a way that disadvantages you.
Not Documenting Variations or Verbal Agreements
In Queensland, courts generally require written evidence of contract changes.
Key Points:
- Parties agree verbally to change prices or scope of work
- Emails mention updates but no formal amendment is drafted
- Work begins before the contract is finalised
Why it's risky:
Any dispute will default to the last signed contract—even if it no longer reflects reality.
Overlooking Termination Clauses
Many Brisbane businesses fail to check critical termination details.
Key Points:
- What triggers termination
- Required notice periods
- Whether compensation is owed
Why it's risky:
This mistake often leads to wrongful termination claims, business interruption, and unrecoverable financial losses.
Ignoring Queensland-Specific Legal Requirements
Contracts must comply with local and federal regulations to be enforceable.
Key Points:
- Australian Consumer Law (ACL) guarantees
- Fair Work Act requirements for employment contracts
- QBCC rules for construction contracts
Why it's risky:
A contract that violates these rules can be partially or fully unenforceable.
Not Seeking Legal Advice Before Signing
Many business owners believe lawyers "slow things down." In reality, the opposite is true.
Key Points:
- Prevents costly litigation
- Avoids revenue loss
- Reduces contract breaches
- Protects business reputation
Why it's risky:
Without legal review, you risk disputes, financial losses, and compliance violations.
Queensland-Specific Legal Requirements
Contracts must comply with local and federal regulations. Here are essential resources:
When Should You Consult a Brisbane Commercial Lawyer?
You should speak with a lawyer if you are:
At Lexnode, we help Brisbane businesses minimise risk and protect their commercial interests with properly drafted, legally sound contracts.
A commercial lawyer can help:
- Identify hidden risks
- Strengthen your negotiation power
- Draft protective clauses
- Ensure compliance with Queensland law
Protect Your Business Today
Don't let contract mistakes cost your business thousands. Get expert legal advice.
Conclusion
Contract mistakes can have serious financial and legal consequences for Brisbane businesses. From failing to review key terms to ignoring Queensland-specific legal requirements, these oversights can lead to costly disputes and business disruption.
By seeking professional legal advice before signing contracts, you can protect your business interests, ensure compliance, and avoid expensive litigation. Whether you're buying a business, hiring staff, or entering commercial agreements, proper contract review is an investment that pays for itself many times over.