It Is Your Business. Why Isn’t It In Your Contract?

I have a really good friend who just started an amazing business. I was his secondcustomer and he provided me with exceptional service. He is like most small businessowners, brilliant at what he does, but he left something to be desired in how he set up his business. 

When my friend started his work, I asked him to send me his contract for me to reviewand sign so that we maintained a business relationship and he was not simply providing services as a friend.

The contract I received was absolutely shocking. He found a contract from a seminar that he thought would cover his business type. Of course like most contracts, it was written by attorneys, contained several pages of legalese, and might as well have been in a foreign language for a business owner. I had the pleasure to explain to him that the contract he sent me gave me, the consumer, all of the power, and left him exposed for my actions and for things that may happen that were completely out of his control. Then I signed the contract and took absolute advantage of my friend. Ok, not really, I rewrote it for him. 

Small business owners run into a similar problem all of the time. Business ownerslike my friend either get a “cookie-cutter” contract from the internet or from a chainsupplies store. Business owners do not know what is in the contract, what it says, what the repercussions are or most importantly what is missing.

I believe one way to create a strong business relationship is to present yourcontract in a way that creates clear expectations that you understand. Now, I am not suggesting that my friend needs to have a contract for all of his business-related transactions. His phone company, internet company, utilities company, copymachine company, and so forth have their own contracts designed for their specific purpose. But for my friend's specific services, his specific widget, he needs a specialcontract designed for him.

If you are in the business of selling doors, make sure your contract is specifically written for the type of doors you sell, the warranty you want to offer, the terms ofpayment, and dispute resolution. If you sell internet marketing services, make sureyou have a service agreement written specifically for you where the client agrees to the concise scope of your work and services and the client’s obligation to you. If you cut lawns, make sure your contract specifically states what dates you will mowand whether or not you guaranty the health of the lawn. The list of professions is endless.

In my experience, most transactional contract attorneys, those that write contracts for a living, have the ability to write contracts that meet your specific needs, arevery good at translating the contract to you, and catering the contract to your clientele. In other words, while a lawn service contract may not be more than afew key paragraphs so the client is not scared off, an internet services contract maybe longer. When there are products involved, the attorney can discuss with you disclaimers and waivers of guaranties.

I usually write about topics that concern a recent client or case that I have dealt with. For this article, in part, I was very happy when the Defendant I litigated against in a recent lawsuit had a cookie-cutter contract from the internet. For a verysimple home-improvement issue, it turns out the Defendant used an internet-ready contract. I am very happy he did. Had he consulted an attorney to have a contract written for him for about $1,000.00, I never would have won the case. However, because he didn’t, it cost the Defendant $4,000.00 in damages.

Consider your time to consult with a transactional contract attorney an investment in your future and a reduction of your overhead. Either way, take control of your business by taking control of your contracts.