As a small business owner, one thing that you might be wondering is why it is important to have contracts with the people and companies you do business with. To put it simply, contracts are the backbone of your business — and your business relationships.

They’re important because they outline the full expectations for both parties, and what will happen if those expectations aren’t met. In other words, they PROTECT your business by documenting the full understanding of the relationship so that there aren’t any misunderstandings later down the road.

Nobody wants a misunderstanding. Business disputes can lead to a lot of wasted time and money on your end — not to mention, they’re a huge headache. And should something go wrong, your contract is enforceable by law and will be able to support you if you decide to take legal action.

What should a business contract include?

Here’s what a standard contract includes:

  • Scope of work
  • Timeline
  • Payment amounts and terms
  • Circumstances under which the contract can be terminated and how that will be handled
  • Terms related to failed obligations

A word to the wise: Always have an attorney review or draft your contracts. Many business owners mistakenly think that using an online template, or writing a contract themselves, will save them money — but that’s the furthest from the truth. Although it may be tempting to use an online template, hiring an experienced lawyer will ultimately save you money in the long run, and here’s why.

You should have contracts with anyone you do business with, whether it’s your employees, clients, partners, shareholders, service providers, contractors, vendors, or insurers.

Contract development is just one thing that our team can help you with.

Client Reviews

6/27/18, FindLaw.com

Rated 5 out of 5

We received a letter from an attorney representing an ex employee from years ago. This letter couldn’t have come at a worse time for our family. Although the ex-employee had no substance in their case and this was mostly a nuisance, we felt very vulnerable and unprepared. I reached out to a few lawyers for a quote and their retainer fees alone were deal breakers. When I reached Thomas Gallagher, he approached my case from a completely different angle and walked me through the many small steps we would take to get through this issue. Within the first conversation I felt like I had a plan of attack, an attorney I could trust, and that our family was protected. Our case ended up never going to court. In fact, Thomas was able to resolve the entire issue within a week. I am extremely happy with the results from this potential lawsuit, but even happier knowing my family and business is now protected by a lawyer than can get the job done.

anonymous

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