As a new business owner, it’s easy to forget about the importance of contracts. You are keen to get as much business as possible, and contracts are the types of things that often get overlooked. But you need them – contracts for everything to do with your business are vital to its success – and protection. In today‘s guide, we’re going to take a look at why contracts are so important, and the areas which you must cover.
Hiring a business lawyer
First of all, while it is possible to create contracts by yourself, you need the help of an attorney to ensure everything is watertight. The simple truth is that a wrong word or turn of phrase – or even a misplaced comma – could result in serious issues for your business. So, get professional advice whenever possible, and always see it as a positive investment rather than an expense.
Contracts for everyone
As we discussed above, you will need contracts for everyone involved in your business in any way. Employees, contractors, customers and suppliers – all will require a contract to ensure you are covered for any eventuality. Failure to get a contract signed could result in your business being at risk from legal charges or compensation claims, so it’s vital you make your business relationships clear.
Explore surety bonds
According to www.meadowbrookdirect.com, surety bonds can give you that extra layer of protection in your contracts, which can cover any damages or losses that have occurred due to not complying with the law. A surety bond is a Three-Party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. There are tens of thousands of different types of surety bonds that can be used in a multitude of industries, so always seek advice from a legal professional first.
Don’t forget about verbal contracts
As www.usatoday.com/ point out, you don’t have to create paperwork to have a contract with someone. Oral contracts are just as enforceable as written contracts, and as long as an offer, acceptance, and consideration – a ‘this for that’ scenario – has taken place, it is a contract. While verbal agreements can be difficult to counter or claim, it does happen, and everything you say to a client, supplier, or employee could be used against you.
Keep them simple
While a lawyer will tend to splash legal jargon all over the contract, in essence, it is always best if you keep things as simple as possible. Good contracts outline everyone’s expectations in a straightforward way, while complicated deals tend to result in disputes. Of course, it goes without saying that you should always read every contract you sign – with no exceptions. There will often be little things in there that could work against you in the future, which you should always request to change and challenge if you are unhappy with them. Good luck!
