We always recommend using a professional, especially for topics pertaining to the law. So let us start with that: have an attorney either review the contract you have or draft a new one for you—the investment is far less than the cost of a lawsuit and could even be less than the loss of a deposit or a client.
Now, miscommunication is even more common than a legal conflict. So, even if you have never had to go to court with a client, or even if you don’t think you need legal coverage (but I must urge you that you do), you will benefit from a well-crafted agreement, if for no other reason than that you will set the right expectations for everyone involved.
So to get you started, here are the things you’ll want to make sure are present in your contract:
- The parties, clearly defined. List your name (or title, whether that’s your business name, “employer”, “consultant”, etc) and their name (whether that’s “client”, “employee”, etc). Also include contact info for both parties
- Timing. This should include when the contract goes into effect (may be a date, or once it’s signed), how long the agreement is in effect and when the agreement is terminated (if determined by a date in time).
- Termination. If either party breaches the agreement, what happens? Is there a fine? Is the contract null and void? Is the business owner allowed to give up the client’s spot to other clients? Be sure to include terms for when you AND your client breach or choose to terminate.
- Scope of Work, or the products/services being delivered. Include specifics here. You may even include what you are NOT offering, if you find there’s a common misunderstanding with your clients in this area.
- Payment. What exactly are you receiving in exchange for your product or service? Not just how much, but how often, for how long and in what way?
- Signatures. Once you are ready to agree on what is written, be sure that BOTH of you sign the agreement. It’s much too often that a client signs the contract, but the service provider forgets to countersign. It’s a nice courtesy to share the countersigned version with your client as well.
Make sure you go through your contracts regularly to ensure they’re up to date and are still applicable to what you’re doing in business. You may choose to review your contract template twice a year, once yearly, or even every couple or years, depending on your business. And anytime you have an issue with a client that makes you worried they might sue you or even just leave bad reviews, go back to that contract and make sure you have communicated everything clearly. There are plenty of discontented clients out there, but one of the most common reasons for conflict between businesses and clients is miscommunication about expectations.
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