Common Contract Pitfalls in Medical Practices

Marizanne Augoustinos, a seasoned legal advisor and former practicing advocate, shares her expert advice on common pitfalls in medical practice contracts, what goes wrong, and how to avoid them.

Common Contract Pitfalls in Medical Practices

In the medical field, the complexity of contracts coupled with the presence of legal jargon often leads to individuals signing agreements without a comprehensive understanding of their contents. This oversight can result in significant consequences when disputes or changes arise within the practice.

Marizanne emphasises that contracts are enforceable as written and not based on verbal agreements or recollections. Failure to grasp key clauses, such as dispute mechanisms or exit rights, can have far-reaching implications, particularly in areas like shareholding, retirement provisions, and share transfers.

To safeguard against potential legal pitfalls, it is paramount to have all agreements documented in writing. Understanding the terms, obligations, and relationship rules outlined in contracts is crucial for informed decision-making. Seeking legal advice when uncertainty arises can prevent costly litigation down the road.

Regularly reviewing and amending contracts as needed is essential to align agreements with the evolving needs and growth of medical practices. What may have been suitable five years ago may no longer be practical today, underscoring the importance of regularly reviewing and updating contracts.

In conclusion, ensuring that all contracts within medical practices are not only in writing but also thoroughly understood is essential for mitigating risks and maintaining a legally sound operation.

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