What Every Contract Needs: Tips to Creating a Binding Contract

WHAT IS A CONTRACT?

Contracts are written agreements that provide clarity between two parties. These agreements will represent the many relationships you will build within your business; including employees, clients, and/or contractors. It’s beneficial to keep updated and effective contracts as they often provide security and set guidelines for a business.

WHY SHOULD I USE A CONTRACT?

Contractual Agreements are the best source to reference if problems arise. Often times written clauses give solutions to potential problems before they happen.  Being familiar with the document by following it closely retains credibility and strengthens client/employee relationships. Many business owners miss key components to a safe and respectful agreement. You may not be achieving a comfortable and agreeable arrangement because your contract is incomplete. When constructing your agreement be sure to include:  

WHAT SHOULD MY CONTRACT INCLUDE?

1. Name of the Parties: Begin any agreement with the names of the parties held to the agreement, use the legal and official names of the person/s or company involved. REMEMBER  the parties included must have the authority to sign on the behalf of the company involved.  

2. Payment & Compensation: The payment clause will go over any compensation and how it should be given and received. If the services are unpaid add it into the contract.  

3. Include a Termination Clause A termination clause determines when the agreement and/or service will end. This can either be a specific date or until certain tasks or services are completed.   

4. Add a Signature Block At the end of the agreement you should include a signature block that binds the contract. The signature block should reflected all binding parties, their position, name, effective date and their signature. It’s recommended to add an effective date that coincides with the date the document was signed.

Here’s the thing about contracts; one size does not fit all and it's important that your agreement reflects your business desires and protects you from future disputes. The contracting services at J Bull Consulting Firm LLC offers tailored made contracts that address our clients specific and unique needs.  

We would love to talk to you about your business, to help save you money, time, and legal complications.