What Information Should I Include on My Small Business Contract?
A Home Business Article Contributed by Abe Gardea
What Information Should I Include on My Small Business Contract?
Do you truly know what information you need to include in your small business contract? A contract can be used to protect your interests, solidify strong business partnerships, cement a long-awaited consultation agreement, and many other things. But, if the terms are fuzzy or everything isn't included that should be, your well intentioned contract just may become your worst nightmare. There is some basic information that be should included in every small business contract. Read on to find out how to structure yours.
Before considering which information to include in your small business contract, think about...
hiring a lawyer to create one for you. For a relatively small fee, you can hire an experienced lawyer in your industry to prepare a contract for you, and you won't have to worry about whether or not you got it right. While you may balk at having to dish out as much as a couple hundred dollars, think of how much it might save you if there is a disagreement over the terms of contract. A good lawyer will foresee anything that could go wrong, and include phrasing in the contract that will protect your interests.
If you don't have the funds to hire a lawyer, and you are going to create the document yourself, you must include these basic sections in your contract.
What information to include in section one of your small business contract.
In the first section of the contract, you need to include the personal names and the names of the businesses who are a party to the contract. It's important to use legal names in this section, because if a dispute ever arises, you'll need to prove who the contract was intended for.
What information to include in section two of your small business contract.
Next, you need to outline specifically what the contract is for, in other words, who will provide a service for who, at what cost and during what time. For example, if you were creating a gardening contract, you would state that party (A) would provide such and such services to party (B) for such and such a price. The work would commence on such and such date, and end on a a specific date (unless it's an open-ended contract) In this section, it's extremely important that you're as specific as possible, because if an argument ensues, it will likely stem from this section.
What information to include in section three of your small business contract.
In order for a contract to be valid, it must be signed. This section of the contract is the signature lines, and the names must match those in section one of the contract. You will need an original signature and not a faxed copy or stamped one.
What information to include in section four of your small business contract.
It's such a simple thing, but this section of the contract is essential: the date that the contract was signed. The reason that it is so important is because the date it was signed is the start of the agreement, and if any party fails to keep up with their responsibilities after that date, they are in default of the contract.
