Contracts are one of the most important elements of the business world. They ensure that both a business and their clients understand their obligations and have their rights protected. While a promise and handshake may work for an agreement between friends, it is simply not enough for any kind of serious business relationship. To protect your business, here are some simple tips about contracts:
Clearly Define the Work That You Will Do
One of the primary purposes of a business contract is to define exactly what you will deliver to the client and how you will do it. This protects your business in case there is a misunderstanding between you and your client, as you have a written document that clearly outlines what they’ve been offered. A corporate attorney can help you draft business contracts that are unique to your business and industry.
Don’t Begin the Work Without a Signed Contract
Some clients may be eager to get the project started before a formal written agreement is drawn up. While most of them may not have any bad intentions, there are clients who could be trying to take advantage of the fact that there is no record of your relationship on paper to behave in a dishonest manner, such as by trying to evade payment or claiming that you quoted them a lower price.
Negotiate When Needed
In some business sectors, the specific terms of a contract are often negotiated between the parties. However, there are some parts that shouldn’t be up for debate if you want to protect your business. Examples include limiting your liability should something go wrong, applicable fees if the client terminates the relationship before the project is complete and retaining ownership of the work until you receive payment.
Get Advice From a Corporate Attorney
Corporate contracts are can sometimes be a complicated legal issue. For this reason, you should request a consultation with a Palm Springs corporate attorney to get answers to all of your questions. The attorney can provide you with useful advice and help draft business contracts that are fair to both parties, protect your business from losses and comply with all applicable laws and regulations.