5 Examples of When Your Service-Based Company Needs a Contract

Contracts are so important in protecting all parties and making sure everyone understands exactly what they’re agreeing to.

When written correctly, contracts provide written documentation of all the details of the relationship between the parties, which helps ensure everyone understands their responsibilities.

Here’s a list of when you should have a contract in your business:

1.      WHEN YOU’RE SELLING SOMETHING.

When you’re selling a product or providing a service, you need a contract that outlines payment terms, delivery expectations, refund policies, cancellation terms, and any other relevant details. That way, if there’s a dispute down the road, both parties can look at the contract, and a clearly written contract will help you avoid having to go to court.

2.      WHEN YOU HIRE SOMEONE. 

If you hire someone – an employee, VA, independent contractor, or vendor – you need a contract to spell out how much you’re paying them, duties, benefits, and anything else you agree to. This will help you if someone you hire decides to back out or claims you’re not honoring the contract.

3.      WHEN YOU’RE COLLABORATING OR PARTNERING UP. 

If you’re collaborating with someone, a contract can help ensure that each party understands the scope of the project, the timeline for completion, and any other relevant details.

4.      WHEN YOU HIRE A SPEAKER (OR SPEAK FOR SOMEONE ELSE).

When a business hires a speaker, a contract can help ensure the speaker understands the expectations and, if applicable, is compensated accordingly.

5.      WHEN YOU HOST AN EVENT. 

When a business hosts an event, especially an in-person event, a contract can help ensure that the venue and other vendors understand their roles and responsibilities. Your business may need other vendor and speaker contracts for your event as well.

These are just a few of the instances in which businesses need a contract. If you’re looking for legal advice about contracts for your business, remember, there’s no one-size-fits-all legal strategy. That’s why we recommend speaking with an attorney.  

If you need help with your company’s contracts and legal strategy, we’re here to help. Book a call here.

DISCLAIMER:

This information is provided for general information purposes only and should not be construed as legal advice with respect to any matter. Ms. O’Brien is licensed to practice law in Florida. This information does not create an attorney-client relationship, and it should not be used as a substitute for legal advice in any specific situation.