As a lawyer working with a wide variety of clients—from cannabis businesses to real estate developers—I’ve seen it all when it comes to contract mishaps. While every contract is unique and tailored to the specific needs of the parties involved, there are a few fundamental elements that must always be present. Missing just one of these could leave you with a legally unenforceable contract and potentially a lot of trouble down the line. So today, I want to share some simple but crucial elements that you must include, or your contract won’t be valid at all.
1. Signatures: The Power of the Dotted Line
This may seem obvious, but you’d be surprised how often people come to my law firm claiming they have an agreement or a contract that was never signed. Here are a few common scenarios I’ve seen:
– A contract is sent over to a client, but it’s never officially signed.
– After multiple revisions, the signing parties assume the deal is done, but no one finalizes it with a signature.
– A service provider starts working on a project before receiving a signed contract.
Let me be clear – until that contract is signed by both parties, the terms are not legally binding. If you’re doing work without a signed agreement, you’re leaving yourself vulnerable. Don’t assume good faith; protect yourself by getting those signatures. After the execution of the document, always send a copy of the signed contract to your customer for their records. This keeps everyone on the same page and minimizes confusion down the line.
2. Clear Terms and Conditions: Everyone Must Be on the Same Page
Whether you’re running an online course or negotiating a real estate deal, the second essential piece of a valid contract is **clarity**. All parties must understand exactly what they’re agreeing to. This means no vague language, no hidden terms, and no rushed agreements.
For those of you using an online checkout system, it’s not enough to simply say, “By purchasing, you agree to the terms.” You must provide an easy way for customers to read those terms—typically through a linked document and a checkbox they must manually select. Failing to provide this could leave you with an unenforceable contract if a dispute arises later.
If you’re selling over the phone, it’s crucial to go over the terms verbally and give the client ample time to review everything before signing. I always recommend giving a day or more for clients to think things over. While high-pressure sales tactics might close a deal quickly, they can also come back to haunt you if there’s a legal challenge later.
3. Record Keeping: Document Everything
Finally, good record-keeping is crucial, especially when it comes to evolving agreements. Businesses often update their terms and conditions over time—maybe you tweak your service offerings, change your refund policy, or adjust your pricing.
Whatever changes you make, be sure to:
– Keep a record of every version of your contract.
– Track which version each client signed.
– Provide updated terms and conditions whenever there’s a change.
This might sound tedious, but it’s absolutely necessary if you ever need to prove which version of the agreement was in place when a client made their purchase or signed their contract.
Conclusion
By making sure your contracts are signed, clear, and well-documented, you’re already doing more than many businesses to protect yourself legally. Don’t make the mistake of thinking an informal agreement or a handshake deal is enough—it’s not. Contracts are the backbone of any business relationship, and the more diligent you are, the less likely you are to end up in a costly dispute down the road.
If you ever find yourself unsure about a contract or needing legal assistance, don’t hesitate to reach out to us to schedule a consultation. Your peace of mind and business security are well worth the investment.
For more information or questions, please contact us at [email protected] or visit https://lawmera.cliogrow.com/book to book a consultation.