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How much protection can a contract give your business?

On Behalf of | Dec 23, 2019 | Contracts

Protecting your business and its resources, competencies and intellectual property is critical to its long-term success. One way that you can prevent costly losses because of other people or entities taking advantage of your company and its initiatives is to require contractual agreements to be signed for all major transactions in Michigan. 

A contract is a document where you can disclose your expectations of the other party, as well as what you promise to do to facilitate an effective and beneficial agreement. You can also use contracts to discuss the consequences that you will give if expectations are not met or the contract is breached in any way. Terms and conditions including the contract’s length, implementation and function within the designated business relationship are all areas of importance that you may wish to address. 

According to Forbes, outside of forming relationships and agreements with other business entities wishing to coordinate formal communications with your organization, you can also create and implement a contract for your employees. This document can address the same components as aforementioned but taking into account the relationship between you and the people you hire. This type of agreement can be helpful in holding your employees accountable and encouraging them to be loyal to your organization. Additionally, if written appropriately, this contract can provide your employees with protection as well. 

Contracts that work the way you intend will take time to create. Working through multiple drafts and asking trusted colleagues to look over what you have created can help you to identify any information that should be included that may have been overlooked initially. The information in this article is intended for educational purposes only and should not be taken as legal advice.