Do I need a Contract for this?
Overall advice: Have a contract for every single relationship your business enters into.
-You and your friend starting a new business? Create a contract that governs that relationship.
-Selling your new widgets in that new widget store up the street? Draft an agreement between you and the widget store owner.
These contracts do not have to be complicated. In fact, they can be pretty simple, but they do need to protect you from all (or at least most) of the ways the relationship can go wrong.
What Are Contracts?
Contracts are legal agreements between two or more parties.
A contract can be either written or verbal (verbal harder to enforce, risky)
-Written contracts can help to avoid misunderstandings
-A written contract is only valid once both parties have signed it. If your drafted contract has not been signed, it’s likely it’s not enforceable, although you may be able to use the draft to demonstrate a verbal agreement.
-electronic signatures are valid
Before you agree to a contract, you should always consult with a lawyer
Why You Need a Contract
You need a contract in order to make sure your rights are protected.
-Contracts (if well written) anticipate potential problems and should include a procedure for resolving disputes.
-you want to buy an item, a contract can make sure that the seller gives you the item after you have provided payment. Or, if you are the seller, the contract can guarantee you get paid for the item.
-employment contract w/ non-compete – prevent your former employees from working for one of your competitors.
Assuming that you don’t need a contract for a small project is a very common mistake.
-Even minor projects can have their issues
-Delays, change orders, etc.
Remember: You should have a contract for every single relationship your business enters into.
As always if you have questions about it as always, feel free to reach out to the Law Office of Jade Carpenter, and I would be happy to help! See you next time.
Email: [email protected]
The materials available at or within this article and video are for information purposes only and not for the purpose of providing legal advice. You should ask an attorney to obtain advice with respect to any particular issue of problem.
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