Here’s What to Do Before You Sign on The Dotted Line
As a small-business owner, you ask clients, business partners, and associates to sign contracts nearly every day. Contracts protect you and your business from liability, detail party responsibilities, and specify dates and financial requirements. You’ll also be asked to sign contracts. Before you sign, however, take a long, hard look at the contract details. Make sure it’s mutually beneficial and seeks to advance your business in some way. Before you sign, consider the following. What Does It Say? A business contract typically includes an offer, consideration, acceptance and mutuality. In other words, the contract asks something of the business owner, specifies remuneration as work or goods are delivered, proof that all parties had a meeting of the...
Why a Handshake and a Promise Isn’t Enough
The good old days of doing business with a handshake and a promise are long gone. It’s indeed a nostalgic idea, but small-business owners today need more than a verbal contract to protect themselves. While it not only makes good business sense to have all contracts in writing in order to avoid ambiguities, in Pennsylvania the Statute of Frauds requires it in most cases. The Why of It Simply put, your business is not safe from contract disputes, whether the contract was verbal or written. However, a written contract that covers all elements of the deal is much easier to defend if you get sued. It’s common to assume that business agreements with known business associates, friends and even family can be made without a written contract. Disputes between...
7 Must-Have Small Business Contract Agreements
Many people feel a pang of anxiety when they consider signing a contract. Business contracts are a necessary part of doing business, however, if you want to protect yourself and your assets. Here are seven business agreements you need to familiarize yourself with if you own a small business. 1. Partnership Agreement You need a partnership agreement even if you’re starting or operating a business with your best friend. Effective partnership agreements contain details about who contributes what, including how much money is contributed; payment distributions; day-to-day duties; how decisions between partners are made; and expense responsibilities. And it outlines what happens when a partnership is dissolved due to death, illness, bankruptcy, retirement or...