As a business owner, you’re likely to enter into several contracts with other businesses throughout the years. It’s important to read over a business contract over several times to make sure it protects your own business interests. Taking the time to make a solid contract will reduce the chances of breach of contract and other issues in the future.
Here are some tips for making good business contracts:
Get It in Writing
No matter what kind of business agreement you want to enter into, it’s critical to get it in writing. Oral agreements are very difficult to enforce in court. If you have everything written out in a legally binding document, however, it will clearly spell out each party’s obligations.
Talk to the Right Person
Before you begin negotiating a business contract, you have to first make sure that you’re actually speaking to the person in charge. If you negotiate with someone who has to get permission from their boss for everything, it may slow things down an increase the risk of errors. If you’re not sure who is in charge, don’t hesitate to ask.
Include All Details
In a business contract, there’s no such thing as too many details. The more details you include, the less likely there will be confusion in the future. If you talk about something verbally with another business owner and don’t include it in the contract, you won’t be able to enforce it in court.
Use Simple Language
It’s a common misconception that business contracts must contain complicated legal language. The truth is, however, that it’s better to write the contract in plain English that both parties can easily understand. This way, no one will misunderstand anything. If you’re confused about any language that’s used in the contract, don’t hesitate to ask for clarification.
Include Payment Details
In your contract, it’s important to make it clear who pays whom, when payments have to be made and the condition for making payments. It’s also beneficial to specify the method of payment. Some people prefer to receive a business check while others would like to be paid with a charge card, for example.
Include Details on How to Terminate a Contract
Not all contracts last forever. That’s why it’s crucial to specify the circumstances that can terminate your contract. For example, if one party misses a certain amount of payments, the other party should have the right to terminate the contract.
If you follow these tips, you have a better chance of creating a good contract that both parties will be happy with. However, if a breach of contract or other complications occur during the way, it’s important to seek out help from an experienced business lawyer in Melbourne, FL.
Thanks to the Law Offices of Arcadier, Biggie & Wood for their insight into business law and tips for making contracts.