Mastering Contracts – Checklist
❒ Get it in writing.
In business it is important to get all agreements in writing that clearly spells out each party’s rights and obligations upfront. This ensures there is no confusion or disagreement later on down the line.
❒ Keep it simple.
A contract does not need to be filled with legal jargon. Instead, create clear and concise sentences. Use numbers and headers to alert the reader what contents are in each section.
❒ Deal with the right person.
Make sure the person you negotiate with has the authority to bind the business and has a vested interest in making sure the business performs its obligations under the agreement.
❒ Identify each party correctly.
You need to include the correct legal names of the parties to the contract so it’s clear who is responsible for performing the obligations under the agreement.
❒ Spell out all of the details.
The body of the agreement should spell out the rights and obligations of each party in detail.
❒ Specify payment obligations.
Specify payment terms including when each payment will be due, on what terms, and what method of payment will be used.
❒ Agree on circumstances that terminate the contract.
It makes sense to set out the circumstances under which the parties can terminate the contract. For instance, if one party misses too many important deadlines, the other party should have the right to terminate the contract without being held legally responsible for breaching the contract.
❒ Agree on a way to resolve disputes.
Write into your agreement what you and the other party will do if something goes wrong. You can decide that you will handle your dispute through arbitration or mediation instead of going to court, which takes up a lot of time and money.
❒ Pick a state law to govern the contract.
If your business is located in more than one state, you will want to specify which state you will be dissolving the business, and ensure you are adhering to all of the laws that apply to that state.
❒ Have a Lawyer Assist You:
It is a good idea during to consult a lawyer when you have questions about contracts. At Carbon Law Group we are here to assist you with any questions you may have and get your contracts on track.