7 Tips For Better Contracts

BASICS – What, How Much, When

1: Description of the Goods or Services – Be detailed!

There should be no questions as to what you are offering and what will be delivered otherwise a judge or a jury will have to determine what you meant and probably will not get it exactly right.

2: Price and payments for the goods or service

Make sure you clearly define the price and how payments are to be made by your customer.

3: Timing for payment and delivery of goods or services

Again detail when payment needs to be made and when delivery of goods or services will be provided.

MUST-HAVES… for when things don’t go as planned

1: Termination clauses

There are three types and each one should outline the grounds and process to effectively terminate and how the parties will be released from their obligations under the contract.

  1. For Cause – when there is a material breach (i.e. not doing 1-3)
  2. For Convenience – no material breach, but provides a way out if needed
  3. Non-Renewal – for automatically renewing contracts

2: Remedies

Includes both monetary and non-monetary remedies for breach or termination of contacts.

3: Dispute Resolution clauses

How disputes will get resolved.

  1. What method – Mediation, Arbitration, Litigation
  2. What law governs the contract
  3. Where disputes will be handled

4: Force Majeure

After the past 2 years, need I say more on why your contracts should include a clause related to major disasters or pandemics  that severely impact the parties ability to perform a contract.


These are just a few tips for clauses to include in your contracts

However, depending on what type of contract you are considering, it is always a good idea to consult with a licensed attorney who can provide tailored advice, negotiate, and draft your contracts so that they include everything you need to do business and protect you when things don’t go as planned.

Stay tuned for more contract tips coming soon!

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