As a business owner, you regularly make agreements with suppliers, clients and employees to keep your operation up and running. And one of the ways you formalize these agreements is by setting up binding legal contracts.
According to NerdWallet, there are approximately 33.2 million small businesses in the U.S., and many of these operations also rely on contracts to keep their organization running. The following are some tips to protect your operation’s interests by creating stronger business contracts.
Put all agreements in writing
When you come to an agreement with another party, you may assume that simply talking about the arrangement is enough. However, you should put all agreements you make with suppliers, customers and employees in writing to make sure they remain enforceable.
Keep the terms straightforward
The wording and terms included in your business contracts do not need to be overly complicated. Keep the language you use simple and clearly outline the responsibilities of all named parties in the contract.
Include terms for conflict resolution
There may come a time when a disagreement arises over the terms included in one of your business contracts. For this reason, always include methods for resolving conflict in your contracts. You may also want to include terms for when to expire or end a contract with the other party.
After forming a contract with another party, keep in mind that the information contained in the agreement should remain confidential. Let the other party know that he or she should not share the terms included in your business contract with anyone else without prior permission.