As a best practice, anything discussed and have been agreed upon in terms of business ventures must be put in writing. However, many small business owners fail to accomplish this. Business people often do not want to add a layer of expense to business deal by involving the legal skills. Furthermore, business deals are often time sensitive and as a result people often believe they do not have time to consult a lawyer. Below are some of the key elements in writing business contracts.
1. Document everything in writing – A written agreement is less risky than an oral agreement but only if you have a document that clearly spells out each party’s rights and obligations in case of disagreement. Using form partnership agreements or contracts from online vendors can be as bad as reusing old agreements without carefully reviewing them.
2. Keep the deal straight – As opposed to what most lawyers think, you don’t need a lot of legal “mumbo-jumbo” to make a contract enforceable. Instead, short, clear sentences with simple, logical headings system which provides a roadmap to the reader to what’s in the paragraph is what is required. You can write your own contract if you put some effort into it.
3. Agree on circumstances that terminate the contract – It makes sense to set out the circumstances under which the parties can terminate the contract. For example, if one party misses too many important deadlines, the other party should have the right to terminate the contract without being on the hook legally for breaching (violating) the agreement.
Info Trivia Resource: http://www.christinascalera.com