Why Good Contracts Matter
Contracts protect both parties and prevent disputes. Invest in clear, well-written contracts.
Key Contract Sections
Scope of work, deliverables, timelines, pricing and payment terms, performance guarantees, liability and insurance, and termination clause.
Pricing and Payment Terms
Specify exactly what is included in price. Define payment schedule: upfront, milestones, or net-30 after delivery.
Delivery and Timeline
Be specific about delivery dates. Include penalties for late delivery. Include force majeure clause for unavoidable delays.
Quality Standards
Define quality expectations clearly. Include acceptance criteria. Specify what happens if quality is not met.
Liability and Warranties
What happens if something goes wrong? Who is liable? What are warranty periods? Insurance requirements.
Termination Clause
Under what conditions can either party terminate? What happens to money already paid? Transition assistance required.
Dispute Resolution
How are disputes handled? Mediation before legal action saves time and money. Define governing law and jurisdiction.
Legal Review
Have a lawyer review all major contracts. Fifty dollar legal review prevents thousand dollar disputes.