What Should be included in a Small Business Contract
In order to protect your business and build better professional relationships, a small business contract is a must. The right business agreements help avoid different disputes and limit your liability as a business owner. Moreover, by signing a business agreement, you also protect your personal information and ideas from being used by competitors.
It is important to prepare a business contract every time when you exchange any type of service, goods, or money. As a small business owner, you may need a business contract in the following situations:
- When you enter a partnership or joint venture
- When you sell your buy materials goods or services
- When you sell, buy, or rent properties or any other kind of real estate
- When you accept work as a freelancer or independent contractor
- When you hire a contractor or services
If you are a business owner from the state of Utah and you are not sure whether you need a business contract or not, you should consult a Provo business attorney, who will be able to answer all of your questions.
What Types Of Contracts Does A Small Business Need?
Most small businesses need the following types of contracts:
- Employment offer letters
- Confidentiality and invention assignment agreements
- Confidentiality agreements
- Web site terms of use agreements
- Letters of intent
- Stock purchase agreements
- Leases
- Loan agreements
What Should Be Included In a Business Agreement?
All business contracts should include the following important information:
- The date of the business contract
- Payment amounts and due dates
- The names of all the parties and entities involved in the agreement
- Agreement expiration dates
- Potential damages for incomplete or harmful services, missed deadlines, and damages for breach of contract
How To Make A Solid Business Agreement Or Contract
If you are currently working on any type of business agreement or contract, here are the guidelines that you should follow:
- Get the contract in writing. Even though oral agreements are considered legal, they are almost impossible to enforce in court. Therefore, make sure that your business agreement is in writing.
- Make it simple. Use simple and clear sentences in your contract in order to avoid any type of confusion.
- Identify each party and entity correctly. Make sure to include all the correct legal names and information about the parties and entities involved in the contract.
- Spell out everything. The body of the contract should include all the rights and obligations of all parties in detail. Make sure you are not leaving anything out.
- Specify payment obligations. It should be clearly stated and explained in the contract who pays whom, the number of payments, and how these payments can be done.
- Include the circumstances that may lead to the termination of the contract. An agreement must also include information about the circumstances, under which the contract can be terminated.
- Ways to resolve disputes, explaining what needs to be done if something goes wrong.
- Make the contract confidential. All the information about the business and the parties involved in the contract must remain confidential.
If you are not sure whether your contract includes all the necessary information, you can always consult a business attorney. If you live in Provo, UT, or any other nearby town, a business litigation attorney in Provo (business litigation attorney Provo) is the specialist you need.
Howard Lewis & Petersen – Business Attorney Provo For You
Whether you need help with preparing a business contract, breach of contract, business litigation, one of Provo business lawyers at Howard Lewis & Petersen is ready to help. At Howard Lewis & Petersen, we specialize in all types of business issues, including Provo business litigation, employment law, real estate, appeals, and others. If you want to schedule your first consultation with a business lawyer in Provo, UT (business lawyer Provo), feel free to give us a call – we are always ready to help.
