A business contract is an important part of a partnership. They are in place so that both sides understand their involvement and follow through with the agreed upon work. Unfortunately, things happen and partnerships end. This makes it vital to have a proper contract in place.
Consequences of poor contracts can include financial, emotional, and/or even physical damages to a business or individuals. Here is a great list from Forbes on the common types of contracts small businesses have: 10 Essential Business Contracts For Small And Growing Businesses
Avoid A One-sided Business Contract
Contracts that only benefit you aren’t helping anyone, including yourself. This discourages the other partner from signing in the first place, and if they do sign, they can come back against you if the contract is very one sided in certain circumstances.
Don’t Have Ambiguously Terms
Contracts can either be way too long or way too short; we hear that a lot in our profession. Usually, businesses and individuals want short contracts that are clear and to the point. Which they should absolutely be clear and to the point, but also long enough to include all possible situations. As an example, how to pay someone. Don’t just include when and the amount, but include what happens if payment is late, information about extra work/expenses, etc.
Be thorough and be descriptive. Don’t use big or ambiguous words that aren’t specific to a situation. It creates confusion or “open to interpretation” situations.
Understanding The Law & Using An Attorney
When dealing with contracts, it is always best to understand the law first. Don’t trap yourself in a situation of signing or drafting up something you don’t fully understand. Use a professional attorney to help you along the way, especially if you did sign something and you are dealing with an issue involving a past contract.
If you need help with a business contract, use our team of attorneys that are well versed in helping insurance agencies, businesses, and individuals. Please reach us through our contact page or Instagram.