How To Write An Effective Contract For Your Business Business Law, Ethics
Almost every transaction conducted in a business involves some kind of contract whether it is implied or written. For example, whenever you purchase an item, the implied contract is that you are giving money in exchange for the item and its effectiveness. Other times, the contract may be written in that you are giving money in exchange for a service over a certain period of time.
Whenever a contract is violated, the two parties are involved in a dispute and litigation may be involved in order to dispute the meaning of certain contract terms and provisions. The purpose of this article is to illustrate how you, the business owner, can write an effective contract that will seek to avoid such ambiguities and make sure that you and the customer come to a solid understanding over the terms and conditions.
#1: Make Sure You Account For Every Possible Situation In The Contract
Whenever parties get into a dispute over contract terms, one party might argue ignorance or may argue that the situation was never written into a contract. For example, if you are selling SEO services and your customer wants to switch plans between the length of their contract, it would be advisable to put into the contract whether or not this is allowed. Another good example is if you are designing a website for your customer and your customer wants you to make substantial changes even after the website is launched and final. Addressing this in the contract would help avoid a lot of dispute and pain in the long run.
Accounting for every possible situation requires you to sit down and really assess the different situations. This is a process that should take a very long time. You have to think from a customer’s standpoint, if he or she saw the contract, what various loopholes and situations would they try to exploit? Chances are if the customer has found a loophole based on the contract you wrote, they will try to exploit it. Make sure you’ve accounted for this in the contract.
#2: Write The Contract In Clear And Concise Terms The Customer Will Understand
As with anything you write, you must make sure to write according to your audience. In this case, your audience is your customers. Make sure to use clear and simple language that the customer understands, using simple words when possible and making sure to define certain terms in the contract if they need defining. Also, make sure to use as few words as possible as lengthy provisions could produce issues with ambiguity and the customer may be inclined to skip over it.