If you have started a business in Orange County or a preparing to do so, it's a good idea to know the ins and outs of contracts. You don't need to be an expert in contracts but knowing the basics will help you understand how they work and how they can benefit your company.
One of the most important tips for a strong business contract is to get it in writing. This is a given. When you sit down to write the contract make sure you use terms that you can understand. There's no reason to use legalese in the contract for it to be effective. Some of the best contracts are the ones where both parties can understand what has been written.
The contract should be as detailed as possible. The more details you provide, the less likely it is that an issue will arise. You don't want to leave any room for interpretation when writing a contract. The responsibilities of both parties should be explained in as much detail as possible.
The contract should also clearly explain how the payment terms will work. This includes how payments will be made, when payments will be made and the amount of each payment.
There should be language included in the contract that explains how the contract can be terminated. No contract is ever created with the idea that it will last for eternity. Termination language is extremely important.
There's no guarantee that a dispute will not arise from the contract, even if it is well-written. Include a clause that explains mediation and arbitration in the event that you do not agree with the other party.
Does your business lack a strong contract writer? You can work with a business organization attorney to help your company write effective contracts and protect itself in Orange County.
Source: Findlaw, "How to Write a Business Contract," accessed Nov. 24, 2017