When you have reached an agreement with a new client has it occurred to you to get that agreement in writing? What about a service agreement? It’s time to consider what you need to protect your business.
It takes a lot of time and money to make this content for you. I’m happy to do it, but I also offset some of that cost by earning money through the affiliate links in this article. All the products I recommend it’s because I trust them. Please enjoy The Contract Shop!
Business contracts outline the expectations of each party and can be enforceable by law. One party is agreeing to offer services in exchange for a monetary amount. The use of business contracts are recommended for all sizes of businesses, including small businesses.
A contract is a mutual agreement between two parties. In these contracts it can spell out the legal consequences of not abiding to the contract and delivering on your responsibility as agreed to. The reason contracts have become necessary is for parties who don’t uphold their end of the agreement. There needs to be legal recourse to ensure the other party receives what was promised to them. It’s an essential and vital way for a business to protect itself.
Contracts come in different forms to protect your business in different ways.
Knowing how to write a contract agreement or how to write a contract agreement for services can be tricky if you aren’t a trained lawyer.
Often people don’t even think of putting together a contract when they are onboarding a new client, but there are many benefits to outlining expectations for each party.
Mutual agreement between two parties
Understanding your responsibility in a contract is essential. A mutual agreement between two parties is when both parties have agreed or consented to terms that both parties understand.
According to contract law, when they say that both parties have reached a mutual agreement or mutual consent, they are referring to parties having reached an understanding on the basis of an oral or written contract. Both can be legally binding, but the written agreement is much stronger.
Types of contracts in business
There are a few main types of business contracts that include: leases, sales related contracts, employment related contracts, and general business-related contracts.
If you are entering into agreements with any of these business functions, a contract is recommended.
The basic elements required for a contract to be mutually and legally formed are:
Offer – an offer is put in place to the other party outlining the terms and conditions of the offer
Acceptance – the other party accepts the terms and conditions of the offer
Consideration, Capacity, Legality
You have a legally enforceable and binding contract when its formation elements observe the application contract laws.
I am not a lawyer so I can’t say with certainty that any of the recommended ways are indeed creating law enforceable contracts, which is why I recommend you to refer to a lawyer for legal advice. I am simply offering an alternative to hiring a lawyer to draw up your contract.
How to write a contract agreement
You are completely able to write a contract agreement by yourself, there is no need to get a lawyer involved. Lawyers can get expensive. You can find free types of business contract pdf’s all over the internet, but it’s hard to know how reliable and secure they are.
If you really want to be sure about the validity of your contracts and the protection your contracts can provide you, a thoughtful alternative to the expensive costs of hiring a lawyer to draw up your business contracts is with The Contract Shop.
Important contract elements to include
Each party must be identified using their legal names, and be sure to date the contract as well. Set out the terms and conditions of the contract, including what is expected to be delivered and by when. For example, if you are a coach signing on a new client you will want to list the details of the coaching package. You list what you promise to deliver in the time frame you deliver it in. And for what fee.
Payment terms should be outlined in the contract as well. Be precise, include the amount of each instalment due and the date, as well as the contract total amount. Be clear and precise to avoid any misunderstandings or misinterpretations.
Include start dates and end dates for your contract. That way there is a specified delivery time that can’t be argued. The contract needs to clearly state the start and end dates of the agreed upon contracted terms.
Alternatives to writing your own business contract
Hiring lawyers for one-on-one work to write the contracts you need to protect your business can be a very expensive option. Especially in the start up phase where your business is tight on cash, it would be great to have a reliable alternative to creating contracts and protecting your business.
In comes The Contract Shop. Meet Christina Scalera, Founder of The Contract Shop, who is a professional lawyer and business genius. Christina graduated from law school at Emory and graduated from undergrad at Texas A&M, College Station.
The mission of The Contract Shop is to preserve and improve the special relationships you work so hard to cultivate as an entrepreneur. They know how hard you work to earn every penny, follower and friendship. The Contract Shop believes in a solid definition of these relationships through contracts to set a trustworthy foundation, no matter how much or little experience you have with contracts.
When you purchase the contract bundles, you get assurance of a lawyer approved document plus a cost savings due to the bulk sales approach.
So click on the link and check out the contract bundles that The Contract Shop offers to busy business owners.
Can you trust these contract bundles?
These contract templates have been signed by people like Danielle LaPorte, featured on Ramit Sethi’s Growth Lab blog and we’re the go-to for companies like HoneyBook®.
When you buy a service agreement template from The Contract Shop®, you get:
• A peer-reviewed contract drafted by Christina Scalera, a licensed attorney in Georgia. These templates have been reviewed by multiple lawyers, which means you’re getting the expertise of a handful of attorneys at only a fraction of their hourly rates.
• The peace of mind knowing that your contract was written for your industry by someone who understands your business.
• Solid protection in plain English. They skip the legalese, so you can please your clients with a contract they can understand.
• Yearly updates! It would be easy to justify yearly license renewals for each of these documents, but The Contract Shop doesn’t believe in making you pay again for something you’ve already purchased.
Click here and check out the contract bundles that The Contract Shop offers to busy business owners.
The bottom line is law and contracts can be confusing and not as straightforward as we’d like to think they are. This is why I recommend using a lawyer in place of drawing up the contract yourself. When working with a lawyer offers assurance that you have done what you reasonably can to protect yourself and your business.
