There have been a few times in my life that I have needed a lawyer, and during those times, their help was invaluable. I worked with lawyers during the custody battle for my kids, when I dissolved the partnership for my business and after I suffered an injury at work. In this blog, I plan to write about the law from a range of angles. I may share posts inspired by my personal experiences, what's popular in the news or what strikes my fancy when I'm writing. I have a daughter, Oliva. I manage a medical clinic, and I love blogging. I hope you like the results. My name is Melinda, and thanks for reading!
If you intend to set up a business for yourself, then you need to know all about commercial agreements. These contracts will form the basis of how you operate and how you provide your product or services in return for compensation. Many people trying to cut costs and make things as easy as possible at the outset may decide to buy general agreements. While some of these contracts may work, it is always best to ask a professional first to avoid any potential issues down the road. What kind of problems could you encounter otherwise?
In essence, a contract is simply a formal way of stating the agreement you have made. It needs to contain basic information about what product or service you are going to provide and when you will provide it. In turn, it should also state how much money you expect in return and how and when you should receive it.
The What-If Scenario
In the real world, of course, there may be added complications. You may need to include specific details that outline a "what if" scenario. For example, you may need to determine what could happen if you cannot deliver due to circumstances beyond your control so that you protect yourself as necessary.
Protecting Your IP
If your agreement involves a certain amount of your intellectual property, then you need to ensure that you protect it. Otherwise, a standard contract may state that the purchaser now owns whatever you have created for them, which could inhibit your ability to trade with others.
You will also need to make sure that you adequately cover yourself should you need to pursue the other party for payment. This is often overlooked and does require some careful thought, especially if it needs to stand up in a court of law.
Additional clauses do not always have to be punitive to one of the parties. When carefully thought out, they are able to protect both sides of the agreement and could even lead to additional opportunities for the business.
Drawing It Up
All in all, it is always a good idea to create a contract with a business lawyer. You may then be able to use this contract as a template for further work with other clients, but you need to ensure that you have a good base to work from in every case.Share