A NEW service could save small firms legal costs over disputed contracts.

Lobby group the Forum of Private Business (FPB) and LEGAL365.com have set up a 24/7 resource offering access to a range of binding contracts and other documents which are updated in line with legislative changes.

The service (www.fpb.org/ LEGAL365), says the FPB, will benefit entrepreneurs who have been tempted to trust in handshakes rather than pay lawyers to draw up business contracts.

FPB chief executive Phil Orford said: “It’s all too common for small business owners to agree deals without any sort of written contract.

“While steep lawyers’ fees can be a costly headache, entrepreneurs should not cut corners when it comes to putting in place professional business contracts.

“Failing to do so can be even more damaging in the long-run.”

He added: “The forthcoming deregulation of legal services means there will be significantly more affordable alternative to using legal firms to gain the peace of mind that comes with drawing up proper contracts.

“By joining forces, the FPB and LEGAL365.com are providing small-business owners with easily-accessible, cost-effective legal protection and expertise whenever they need it.”

LEGAL365.com was set up by established law firm Last Cawthra Feather which offers legal advice to businesses and private individuals.

Spokesman Ajaz Ahmed said: “These contracts are not simply templates, they are live, working documents created to meet business owners’ specific needs and are updated to reflect changes to the law.”