How to Write a Contract – Prestige Business Management’s Guide to Ensuring Invoices Are Paid Based on Contractual Agreements
Ever wondered how to write a contract? This guide can help you understand the basics of contract writing – you should always seek legal advice regarding contractual agreements in business. People generally tend to pay on-time when contracts are part of the agreement. People’s minds become focused on the agreement when there is a legally binding contract. As individuals, we have mobile phone or car payment agreements that are formed by contractual agreements. Your business could improve cash flow function and improve payment security by using contracts to make sure you get paid on time!
What is a contract?
A contract is a legally binding agreement between two parties – your company and your client. They can be individuals or businesses. A contract can agree to purchase goods or services, borrow money, provide a rental agreement or franchise/brand partnership agreements.
What should it include?
A contract usually consists of four key principal elements.
- An Offer – This is what the contract is about and includes key terms of what is being offered/discussed.
- An Acceptance – This allows your client/party to agree to your terms and thus accept the contract terms.
- A Legal Intention to Create a Legal Relationship – Acceptance of the terms should then highlight what this would mean in terms of both parties forming a relationship to deliver on the original offer.
- Legal Consideration – This is the financial dynamics of the offer/acceptance and relationship processes and is followed by signatures from all parties to make the agreement formal.
The “Small Print” Explained
The structure and thematic elements as highlighted above outlines a contractual agreement. But in order to understand how a contract will help you. You need to understand what a contract should include in order to help protect you and help you make sure you get paid on time.
What a Contract Should Include
- The exact specification of the work to be completed, in full detail without vagueness.
- Deadlines and Milestones for Delivery
- Revision or Edit Rules
- Contact Information for All Parties
- Early Termination Processes
- Intellectual Rights Guidance
- Payment Terms / Deadlines
- Shipping/Distribution Terms/Deadlines
However, you can download contracts from the internet from template re-sellers. However, it is advisable to meet with a solicitor to help make sure your contract is legally correct and protects your business. Contracts can help your business develop new partnerships that can help your business grow.
Nonetheless, why not call Prestige Business Management today? Call our team today on 0203 773 2927 for more information? We can help you navigate the pitfalls of contract design and provide you will legal assistance through our network of legal partners. We can help your business protect its income by providing sound contractual agreements for your service/product deliveries.