As a business owner, a large part of running your operation involves forming ongoing agreements with employees, suppliers and customers. For this reason, creating business contracts is something your organization likely does on a regular and ongoing basis.
According to Nerdwallet, there are 33.2 million small businesses across the U.S., and many also rely on contracts to run their operations. The following are some strategies to rely on to create business contracts that protect your organization’s interests and contribute to your operations running smoothly.
Put oral agreements in writing
Never assume that an agreement you made with another person during a conversation will come to fruition. If you plan on forming a formal business agreement, always put the arrangement in writing.
Keep the terms clear and simple
Your contracts do not need to be overly complex to be enforceable. As you put together your contracts, carefully identify each party, the obligations of each party and the general terms of the agreement to complete the document.
Include solutions for dispute resolution
There may come a time when a dispute arises over one of your contractual arrangements. When forming your business contracts, include options for resolving potential issues and either discontinuing or continuing the arrangement.
When you form a business contract, do not assume that the arrangement between you and the other party will last forever. In addition to these other terms, include a timeframe for the end of the contract or ways to terminate the contractual arrangement if the other party does not uphold his or her end of the deal.