The Right Contract For Your Business Is The One That Fits

Other than good insurance, the small business also needs a good form contract. 

You wouldn’t jam your feet into too-small shoes because your brother-in-law let you have them cheap. Similarly, you shouldn’t jam your business into a contract you got cheap online or from a friend, vendor or client. You also shouldn’t jam your business into an old contract that hasn’t kept up with changes in the law.  

A proper business contract will identify the risks particular to your business and business model, and protect you. If you sell products, you don’t want a services agreement, and vice-versa. The contract you re-purposed from a client may protect your customers to your disadvantage. Ditto for the re-purposed contract from a vendor. 

Your terms and conditions should be geared toward your business and its specific risks.  This is a good place to spend a few of those precious start-up bucks on a lawyer instead of hoping you found the right one online. 

Some contracts are required to be in writing, such as anything to do with land, contracts for goods worth $500 or more, and contracts for services that cannot be performed in a year. Sometimes valid contracts can be formed by exchange of email.  They can be on index cards or cocktail napkins.