As a business owner, you rely on many sets of people. You cannot afford to subject yourself to their whims. You need to know who is doing what when. Failing to use well-written contracts allows people to do as they please
Contracts provide a solid foundation for your business relationships
You will need several different contracts for your company. Here are some examples of who you need contracts with:
- Employees: The contract allows you to set out what you expect from them and what you will give them in return. It helps you define roles within the company and define the payments you will need to make.
- Suppliers: Let’s say you run a restaurant. To do this, you need your suppliers to deliver ingredients. You need to set clear terms with them about when they deliver your ingredients and what happens if they do not deliver on time. If they turn up with a week’s supplies during the middle of the lunch service, your staff will be too busy to receive the goods. If they turn up an hour before dinner with the ingredients you need for that day, your staff will not have time to prepare them before diners arrive.
- Clients: Imagine you hire out a venue for functions. You need contracts to ensure that when a client makes a booking, they do not pull out the day before. You need to set out dates on which they must pay deposits and clarify cancelation penalties.
Weak contracts can leave you vulnerable when employees do not fulfill their role, suppliers let you down, or clients cancel on you. It is best to seek legal help when drafting your business contracts to ensure they will stand up if tested.