The Contracts Building Block - Part II Written Contracts Add Value to Your Business
Lisa J. Scott
CEO & Founder of In2edge | Attorney | Author | Podcast Host of “M&A+ The Art After the Deal” | M&A | Cryptocurrency | Crypto Operations | Contract Management | Compliance
1. Prevent or Minimize Disagreements and Court
It costs a lot less money to resolve a disagreement on our own than going to court. Court appearances and hiring a litigation attorney are costly and take up a lot of valuable time otherwise spent on making profit for your business. Looks like he forgot that they agreed to $400 to fix her car instead of his original offer of $500. A signed written agreement would prove that they agreed to $400. The cost of having a written agreement drafted is easily 10-20% of what you might otherwise pay in the first month of litigation!
2. Set Clear Expectations
It is important to set the price, scope of services, deliverables and payment terms (among many other things), depending upon the contract. Here are a few common terms that address concerns many business owners have when establishing business relationships with others:
This is how invoicing and payment works between us
This is how I would like you to handle my confidential information
This is how we protect the business I already established with my customers
This is how we will handle it if one of us defaults
Written by Intuitive Edge Team