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Tips for Writing a Solid Business Contract


As any entrepreneur should know, closing a deal with a client is a very important aspect of any business. This deal can provide you with substantial revenue to help your business continue to grow. However, this deal needs to be set in stone in the form of a written business contract.

Never rely on an oral promise from a customer. This will only set you up for failure down the road and cause a “he said/she said” situation that can lead to a serious disagreement and ruin your business. Therefore, you want to have everything in writing. Here are some other tips you need to know when creating a solid business contract for a service.

Make it Simple

While you want your contract to be legally enforceable, you can clear up a lot of confusion by removing the legal jargon. The average customer is not going to have the legal knowledge to understand the contract, so make the sentences clear and to the point. Explain any confusing terms and keep the contract organized.

Include Obligations and Payment Terms

Make sure your contract clearly spells out what each party is responsible for doing. What are you providing for the client? What does the client need to do on their end? There should be no confusion about what needs to be done.

Don’t forget to include payment terms. Make sure to clearly state when you expect to be paid, how much and through what payment method (cash, check, credit card, etc.). Otherwise, hunting down payment can be a nightmare. If the customer agrees to the terms of the contract, make sure they sign it so it becomes enforceable.

Deal With the Right Person

Don’t accept a deal with an administrative assistant or some other junior member of a company who does not have the authorization to make deals. If the person has to have someone higher up, such as the CEO or business owner, approve everything, then it would be better to just deal with that person.

When you find the right person to handle the contract, make sure you correctly identify the party. If you’re dealing with a company, be sure to use the full company name in the contract. if you’re dealing with an individual, be sure to use their first and last name. Otherwise, your contract could be void.

Discuss Contract Termination

Contracts don’t last forever. You or the client may decide it’s not a right fit. In any case, there should be guidelines for contract termination. You may allow for the contract to end at any time, or only in unethical or illegal cases, such as breach.

Learn More About Business Contracts


When forming an agreement with a client or another company, it is best to have a solid business contract in place that protects your business and legal rights. Avoid making mistakes by having an experienced business lawyer on your side.

Orlando business contract lawyer B.F. Godfrey from Godfrey Legal can provide you with solid advice to protect your business. To schedule a consultation, call (407) 890-0023 or fill out the online form.




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