When you own a business it’s important to keep it protected, after all it’s your livelihood that is at stake. Having a well-written contract is essential to help keep you protected against unforeseen circumstances and help avoid any disputes. Creating a business contract is a daunting prospect for many small business owners but it doesn’t need to be. In this blog, we’ll run through some simple tips for creating a business contract that protects your interests.
Include details of both parties
There are certain things needed for a contract to be legally binding and details of both parties is one such thing. Your contract should include the legal business name, main contact, address, and contact details for the client as well as your own business. This sets out the parties involved in the contract and clearly identifies who they are.
Specify what services are provided
Your business contracts should include a detailed description of the services being provided and the scope of the service. Being as specific as possible will help ensure that it is clear what service you will be providing as well as the limits of the service. By setting out the details of your service you give your clients a clear idea of what they are getting for their money and setting out expectations for both parties.
Set out the terms of payment
Cash flow is key for any business and setting out the terms of payment in your contract will help ensure that you get paid for the work you do. When establishing payment details you should include how you will be paid, project deliverables, billing schedule, payment schedule and the types of payment options.
Your payment terms will address how long clients have to make payment for your services as well as any penalties, such as late fees, for failing to make a payment.
Project deadlines and timescales
Setting out the timescales and deadlines for projects will help to keep things on track and stop projects from rolling on indefinitely. Make sure you include details of anything the client needs to provide and timescales for this to help keep things moving smoothly.
Establish cancelation terms
Make it clear what the terms of terminating the contract are. Clearly set out when the service can be terminated and what payments are due. You can also add in details of what happens in the case of a delay, caused by the client, as well as early termination fees. The cancellation terms can also include how disputes should be handled and details of any notice that is required to terminate the service.
Seek legal help
One of the best ways you can protect your business is by having a lawyer check over your business contract. Not only will they be able to provide you with advice and guidance on how to structure your business contract, but they will also be able to spot issues with your contracts.
Your contracts don’t need to be full of legal language, but they do need to clearly set out the details of the service you provide, and the parties involved. By employing a business lawyer to review your contracts you can be sure that your business will be protected.