Assuming that you run a business of your own, you’ll certainly have several business relationships that will get you tied down in different kinds of activities. It can either be a buyer of your services and goods or a supplier of your services and goods, or even a reliable business partner.
Although each of their activities will be different from one another, the one thing that is common between them is a contractual deal or liability or obligation that should be fulfilled in order to carry forward the venture. So, creating a business contract is one of the most crucial steps a business owner should learn. Here are a few tips.
The agreement has to be in writing
If you’re striking an agreement about the expectations and deliverables between different business organizations, the two ways in which you can record the conversations are either orally or written. Though in most cases, oral agreements are deemed legal yet in order to make a solid footing, it is better to get a business contract in writing. Remember that a written agreement will last forever. Also, in the future, if both parties that have signed a contract agree to make a change such as extending the terms, adding a data protection addendum, or updating pricing you’ll need a contract amendment for that.
Put a cap on the liabilities of both business parties
There’s more to business contracts than just mentioning what to do, how to do it, and when to do it. A business contract also covers the most crucial part that deals with securing and protecting yourself in the event things go haywire. Hence, it is vital to control your liabilities and sound as realistic as you can. In case of future discrepancies, the penalties should also be mentioned in a business contract.
Write down all your responsibilities and rights
It is also crucial to cover all the responsibilities and rights of both the business parties. Each and everything that is written in the business contract is deemed as intellectual property and hence you have to be extra careful. The contract should mention the rights, duties, and responsibilities of all individuals who will take over in the near future. It should also comprise payment conditions.
Make it confidential and straightforward
Writing a business contract doesn’t have to mean using complicated words in order to make it more appealing. At times, this complex jargon fails to represent the actual meaning and can lead to complications in the long run. Hence, instead of using tricky words while writing a contract, use shorter sentences that are clear to read and understand.
Get help from the experts
Before you sit to write your first-ever business contract, you should seek the help of an industry expert. You can learn more about business contract attorneys who can assist you in writing the most professional business contract. Since it is your business contract, you can’t afford to make silly mistakes that could boomerang in the long run.
Therefore, if you’re new to a business and you have to make a business contract, keep in mind all the mentioned tips shared by experts.