A good contract can protect you and your business from substantial losses and conflict. While the details will change depending on the services to be provided and transactions to be made, there are some key elements that every business contract should address. If you are amid a breach of contract case or you have questions about a contract, it may help you to know the details that make a difference.
A good contract will address the basics
First and foremost, a good contract will have contact information and the names of all involved entities. It should also include, clearly and thoroughly, the context of the services. In its development, a contract should provide an opportunity for each party to benefit from the agreement. Many contracts would do well to include the following matters:
- Money: A business contract should address an expected means of payment, conditions for late fees and other situations that would give rise to extra fees. Additionally, if this is an employment contract, are payment matters addressed in full? What about the benefits?
- Time: A good contract should consider the schedule of all parties and exhibit a realistic timeline beneficial for all. If it is a contract for an independent party, how long is the work or project expected to last? What are the expectations for the working hours?
- Business policies: While this may not apply to every business contract, a company should address expectations for employees and independent contractors to follow their applicable business policies.
In addition to the above, note also that it is vital you and your attorney examine the fine print of a business contract – especially when you face a long-term agreement.
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