Navigating Contracts and Legal Risk: Practical Advice for Female Founders

Hi, I’m Emily Logan Stedman—a commercial litigator, AmLaw100 partner at Husch Blackwell LLP, and advocate for practical, people-first lawyering. I spend my days helping business leaders prevent and resolve contract disputes, and I’m passionate about empowering founders with the knowledge to protect what they’re building from day one.

Here are some of the most common questions I hear from entrepreneurs about contracts, litigation, and risk—and some thoughts* for staying out of costly legal trouble:

I am not your attorney. Reading this Q&A does not create an attorney-client relationship and the article itself is not legal advice. These are general thoughts and should not be relied upon as a substitute for legal advice tailored to your specific circumstances. For advice about your business, please consult your own attorney, or reach out to me directly if you need an attorney.

What are the most common contract mistakes you see entrepreneurs make that end up in litigation?

The top three mistakes are:

1. Vague or missing terms. Many contracts gloss over key details—payment, deadlines, deliverables, or what happens if things go wrong.
2. Boilerplate overload. Using generic templates or accepting “standard” terms without tailoring them to your actual business needs.
3. Not addressing dispute resolution. Failing to specify what happens if there’s a disagreement—where, how, and under what law it will be resolved.

What clauses should I always include in my contracts to protect my business?

At a minimum, make sure your contracts clearly address:

• Payment terms: When and how you get paid, and what happens if payment is late.
• Termination rights: How either party can end the contract, with clear notice periods and any penalties.
• Limitations on liability: Caps on damages and clear indemnity language.
• Dispute resolution: Where and how disputes will be handled (mediation, arbitration, court—and in which state).
• Confidentiality and IP ownership: Make sure your business’s intellectual property stays yours.

What are red flags to watch for when reviewing a contract someone else drafted?

• One-sided terms: If everything favors the other party, push for more balance.
• Automatic renewals: These can lock you in—mark renewal dates on your calendar and know how to opt out.
• Vague language: If a term is unclear, ask for clarification or revision before signing.
• Missing timelines or deliverables: If the “what, when, and how” aren’t clear, you’re at risk.

How can I reduce the risk of expensive contract litigation?

• Get everything in writing—no handshake or verbal deals.
• Be clear and specific about expectations, deadlines, and remedies if something goes wrong.
• Communicate early if issues arise—sometimes a simple conversation can prevent a costly dispute.
• Invest in a strong contract upfront—prevention is always cheaper than litigation.

If a dispute does arise, what should I do first?

• Stay calm and document everything.
• Review your contract—know your rights and obligations.
• Communicate with the other party, if possible, to see if you can resolve things informally.
• Consult a lawyer before taking any action. Early legal advice can often save time, money, and relationships.

What’s the real cost of contract litigation, and can it be avoided?

Litigation costs can quickly exceed the value of the contract itself—especially once you factor in legal fees, discovery (the exchange of information, and business disruption. Most disputes can be avoided or resolved early with clear contracts, good communication, and a willingness to negotiate.

Q7: What’s your top tip for a founder negotiating contracts for the first time?

Don’t be afraid to ask questions or push for terms that protect your business. Use a checklist for every contract (payment, termination, liability, dispute resolution, IP) and get legal advice before signing anything significant. Remember: you have leverage, even as a small business.

Conclusion

You don’t need to be a contracts expert to protect your business, but you do need to be proactive, ask questions, and prioritize clear, balanced contracts. Prevention is always less expensive than litigation, and some legal investment upfront can save you major headaches down the road.

If you have specific questions or want to talk through a contract or risk scenario, feel free to reach out to me directly. I’m always happy to help founders build strong, resilient businesses.

This article is for educational and informational purposes only and does not constitute legal advice. For guidance tailored to your specific situation, you should consult an attorney.