Do you always need a contract to protect your business? The short answer: Yes. However, not all business contracts are created equal. Each contract should be tailored to protect your business interests.
Your business contract should address the potential issues that may arise that could harm your business. It should also include terms and conditions that provide enough guidance for all parties involved so everyone understands their responsibilities and what options are available to resolve disputes.
What to consider when drafting a contract
A business contract can include a variety of provisions and should protect your interests and goals. Here's what to consider to create a contract that will best protect your company:
- All contracts should be written agreements
- Use correct terms that are understood by all parties
- Include financial details, including how payments will be made
- Add a mediation and arbitration clause to resolve disputes
- Add language on how to terminate the contract if necessary
- Include confidentiality stipulations to protect business operations and trade secrets
It is important to create a contract that is enforceable. This means that your contract is able to enforce the stipulations noted in the agreement and is a legally binding contract that can protect your interests, even if you end up in court over a dispute.
One important thing to note: These are general guidelines for most types of business contracts that may involve a partner, vendor, employee or client. Every contract should be based on the individual situation and will often require more specific provisions in the contract.
Our attorneys at Rich Michaelson Magaliff, LLP, have decades of experience helping individuals and businesses in Manhattan draft and enforce all types of business contracts. We understand the nuances of New York business laws and what options to consider to best protect our clients now and in the future by creating well-drafted and enforceable contracts.