As an Oklahoma business owner, you enter into multiple agreements with vendors and clients. Your company relies on these agreements to run successfully. But if you only use a handshake to seal the deal, the other party may not honor your terms.
When you enter into any agreement, a written contract can ensure that you have enforceable terms. While you may never need to challenge a contract, using them can protect you from a broken agreement disrupting your business. Here are a few tips for creating a successful contract:
- Describe the service or work the other party provides – You and the other party should agree exactly how much work the agreement covers. If the other party understands all the details of the work, they can be confident in their ability to do it and know that they’re charging a fair price.
- Cover all details related to payment – You and the other party should understand what value each side gets from the contract. In the agreement, you may pay cash for a service. Or you may be exchanging services. Include the time limit for when payment is due and the penalties for paying late.
- What happens if one side can’t fulfill the terms? – Sometimes one party can’t perform their obligations. The contract should describe how each side can break the agreement or what the penalties are for terminating early.
- Follow all legal requirements – Any contract you sign with another party should be enforceable in court. You may want to ask your attorney to review the agreement before you sign.
Hopefully, you never have to take another business to court for breaking a contract. But when you do business with another party, you don’t want a broken agreement to affect your success. A contract puts all your terms down in writing, ensuring both sides understand their legal obligations.