You can never be too careful about the way you handle your legal business.
Upward of 53% of small businesses get sued annually. Lawsuits are commonplace, and the best thing you can do for yourself is to handle your contracts with care and precision.
If you learn how to handle your contracts in a way that protects your business, there are some solid tips you can put to use.
Keep reading to learn more about the different types of business contracts that you should know about.
1. Outline the Duties and Nature of a Partnership
A business agreement contract is one of the most important documents that you can have been collaborating with another party.
Many partnerships involve two parties who never formally outline their duties and obligations to each other. These contracts let you know who is responsible for what, so that all parties are held accountable.
These contracts can include out clauses and will protect both parties in court.
2. Understand Fixed Price Contracts
When you’re entering into any sort of business with another party, all of the details need to be hashed out in writing. In many situations, this means you have a fixed price agreement for whatever services you offer.
You can put the price in writing in the contract, along with the terms. This is common when you put someone on a retainer for a maintenance plan or other type of service.
A company like AuditMate can help you keep tabs on your equipment and machinery so that they’re always properly maintained. They will create a client contract that explains every important detail and responsibility.
3. Put Together Intellectual Property Contracts
When you’re interested in caring for your intellectual property, it pays to put together quality contracts. Intellectual property is a huge part of business today since companies are able to build a huge brand thanks to social media, content marketing, and garnering a following around the world.
Since content is so valuable right now, you need to protect what you create, so that you recoup every dime from it. Take the time to file patents and secure the rights of anything you create.
4. Carefully Create Purchase Agreements
The Business-to-Business (B2B) sector is huge right now, and you will likely enter into several agreements with other companies. This can include a purchase agreement for supplies and a variety of services.
Make sure that the contract includes invoices, final prices for the products and services being exchanged, return policies, and other circumstances.
5. Disputes Require Thorough Contracts
Handling disputes is also a common facet of doing business. In order to do it cleanly, you will need to get everything in writing.
Hold some mediation sessions to come to an agreement. During these meetings, both parties can put what they want in writing so that it can be formalized.
Read Up on the Different Types of Business Contracts
When you’re aware of the different types of business contracts, you’ll conduct ironclad business that holds up to scrutiny. By understanding what goes into a contract, it’ll help your company, regardless of industry.
Owning a business becomes far more doable when you have the right information. Check out some of our other articles that can answer all of your pressing business questions.