Business Contract Template: Everything You Need to Know
A business contract template is a document you or another party will create that will serve as a foundational document in current and future business deals.3 min read
2. Drafting a Contract
3. Contract Components
A business contract template is a document you or another party will create that will serve as a foundational document in current and future business deals. The agreement will perform the following functions:
- Safeguard ideas
- Limit personal liability
- Establish expectations for clients and employees
Agreements comprise a vital part of conducting business. However, they can be an expensive process, especially for tech-based companies. To get the best out of a contract while ensuring it meets legal thresholds, hire a business contract attorney to help you draft a contract. Unless a lawyer happens to be savvy in the tech field, he or she must spend billable hours in knowing the technology of your work. The lawyer must know the technology to ensure that the agreement has sufficient provisions that will protect your interests.
Conducting business is not only about shaking hands. Rather, you must have a written agreement that ensures all parties remember what they have agreed to. You should agree to a contract that details all conditions and terms of the contract, while clearly establishing expectations from all sides. When reviewing a contract, look for the following attributes:
Such provisions should be reserved for resolving disagreements while ensuring all parties know what’s expected of them. You may encounter a similar agreement under the following names:
- Business contract agreement
- Business contract template
When a business agreement is based in writing, you stand a better chance of preventing miscommunication because all details are clearly stated. The agreement makes it easier for all parties to receive compensation and in what manner they will be paid. Moreover, the contract must state the procedures when a project is finished, including what should be delivered, and any payment due dates.
Drafting a Contract
Regardless of who drafted the agreement, you can use a template, or you may be given an agreement that requires your signature. You should always read an agreement before signing and have an attorney review an agreement if possible. You should check that all information discussed is included in the contract. Moreover, you should also look for correct names and spelling, including accurate statements. You should also look for any unclear language that could foster confusion in the future.
Read all fine print and ensure that you know the meaning behind any terms you may be unfamiliar with. When you sign the agreement, the contract is legally-binding, and you must make certain that you comply with the contract at all cost. Otherwise, you may end up stuck in a contract you did not agree to, or you could face a breach of contract.
Moreover, certain contracts may contain what’s called an indemnity clause, or other avenues of assigning blame for any errors. You should check if such provisions would apply to you and how much liability you would absorb.
The University of New Mexico notes that all agreements need to have the following attributes:
- Product or service needs to be offered (the offer)
- Something must be exchanged (ex. money), otherwise it is a promise or gift instead of a contract (the consideration)
- All sides must accept the contract terms (the acceptance)
All sides must agree to the terms and note that they have official interest in the agreement (mutuality).
Even if you have a template, get advice regarding local laws that may apply to your circumstance. There may also be an association or union mandates that may need to be added. For instance, you must also ask yourself if noise restrictions or insurance requirements you need to be aware of. Also, there may be planning permissions or fees that you’ll need before a project could begin. When assessing a contract, take no chances and spell out all pertinent information that’s relevant to the agreement. Remember that what may seem obvious to you may not be to another party.
In addition, you must define important terms and the precise service and products that you’ll provide. For example, a term such as “due in 30 days” could mean business or calendar days. You may assume business days, but another party may assume that it’s calendar days. Due to such a misunderstanding, you may find yourself in an argument over late fees.
To learn more about a business contract template, you can post your job on UpCounsel’s website. UpCounsel’s attorneys have graduated from some of the best law schools in the nation and will help you draft a sound contract template that works to your advantage. In addition, they will read over any agreement before another party requires you to sign it.