As a small business owner, your focus is likely on improving efficiency, enhancing your profits and maintaining operational stability. Developing strong business contracts can help you reach these goals.
According to the Small Business Administration, there are 32.5 million small businesses in the U.S., and many of these operations also rely on solid contracts to further their objectives. We recommend that you have your business contracts prepared by an experienced attorney, but should you need to prepare an agreement in an emergency, include the following information.
Your business contracts should not be overly complicated or difficult to interpret. Include the basic tenets of the agreement and use clear, direct sentences to describe the terms of the contract. You should also make sure that you put down all of these terms in writing as verbal agreements are difficult to enforce in a court of law.
Identification of each party
You should accurately define every party involved with the new contract. For example, when you draft an employment contract with a new worker, include who the employee is and name your specific business.
How to resolve disputes
It is almost inevitable that an issue with one of your suppliers, employees or clients will arise at some point in relation to the terms of your contract. Include information about how to resolve the dispute in your contract for when a problem does occur.
Additionally, you should include stipulations for how any party involved can terminate the contract in the future. For example, if a client does not make payments on time, you should reserve the right to terminate the contract in this legal document.