Business contracts are important to the relationships between organizations and business partnerships. Contracts maps out and specifies the terms of the agreements made between two parties, products or services being asked and provided as well as any deadlines or time frame associated with the relationship.
Contracts in business help people avoid disputes, misunderstandings and court appearances in worst-case scenarios, offering legal action if one party cannot commit his end of the contract. Knowing how to write a business contract and understanding what it entails for you and the other party can protect you and your business. These are the elements to include in an enforceable business contract:
1. Basic Information: Write the date at the top of the page and also provide the legal names of both parties following this format: “This contract is between ___ and ___.” If there is another type of identifying the information you want to add such as the industry, title or business designation, you’ll be able to include it in this section. If this is a contract representative of a business, write both the business names and the names of the people whoa re given authority to represent the business. This could include names of the CEO, president or director.
2. Offer: One of the first elements of a contract is an offer. There simply is no contract without an offer in place. A business can request an offer or an “invitation to treat” by announcing that it is open for bids and to accepting contracts. For example, If you are promoting your products in a store window, you’re offering acceptance by accepting customers. Listing your services or products as an advertisement in the Sunday paper also counts as an offering of the products ans services to the general public.
3. Acceptance: This is another important element which follows the offer. It means someone has decided to take up the offer. What makes up an offer as well as what an acceptance includes, will vary but usually must have a statement of willingness by both parties in entering an agreement. This can either be implied or expressed in a written document or directly to either just an individual or a group of people.
4. Intention: Intention means that both parties must intend for the contract to have legal consequences. The law will typically not concern itself with domestic or social matters unless both parties have stated that the agreement constitutes a legal contract.
5. Legality: certain cases, require some formalities to be followed to make a contract legally binding. Most states now ask that businesses issuing a credit to customers put this in writing. The purpose of the agreement also cannot be legal, otherwise, it doesn’t actually constitute what a contract is supposed to be. for instance, you can’t have a valid contract selling alcohol to people or adults below 18.
When you’re entering an agreement with a contractor you hired, you are also entering into a professional relationship with them. In this case, a written contract is the best way in starting that business relationship and protecting the interests of both parties. A well-written, contract ensures that both parties are in an agreement to commit to the responsibilities they have outlined. Here are some steps you can follow in drafting your cleaning services contract:
1. Get it in writing: Although in many cases, oral agreements are considered legal and binding, most of the time, they aren’t enforceable and can’t be used in court. In the corporate world agreements should always be put in writing regardless whether the law requires it or not. Having a written contract puts both parties in a good position than oral agreements since you have a written record that clearly spells out what each party’s right and obligations are should there be any misunderstandings or confusion.
2. Discuss the nature of the agreement: Make sure that you write down clearly what each party’s obligations are. You have to indicate your responsibilities and its limitations, the specifics of the services or goods you promised to provide and what the client’s end of the deal should be. It’s better if you use an outline template before finalizing your contract and set the terms regarding the materials, costs and any added charges for special requests of services, including the payment terms.
3. Write what the service includes: Never assume that the client automatically understands what the nature of the job is. You can do a break down for explaining your location, hours of service, the number of times you have to meet and a contingency plan if necessary.
4. Itemize products and services: As a provider, it is your responsibility to define the scope of the service and what it does and doesn’t include to avoid confusion. Provide a checklist of what the client gets for what they’re paying. For instance, freelance artists usually give clients a package to choose for their services. It usually includes the person’s time, mileage, finished output or projects, etc. You may choose to add a provision or section regarding the purchase of some tools and when you can deliver them.
A business contract entails evaluating the scope of a service or project and giving a detailed description of each party’s responsibilities and what they have committed to delivering, which would leave no room for confusion and ensures the job or product is delivered as promised and agreed. Here are further tips you can use to finalize your contract:
One way for business owners to focus more on their business is to turn the cleaning duties over to well-respected professional cleaning services and make any of these contracts in writing:
Put it in writing. No agreement exists if there is no record of it ever happening. Draft the contract and review it with your client present so you can update it easily if you need to make some changes, then get the final copy signed. The document will serve as the foundation of your professional relationship.
Provide a price quote. As a contractor, especially one that works independently, having a price quote for the service being offered in the contract is the best way to build trust with your customers. Your quote should explain added charges and fees for overtime, applicable tax as well as deposit statements, cancellation fees, payment method, and payment due dates. You may need a separate sheet for this, which you can attach to the contract for a detailed price list or break down, especially if you’re going to include copyright fees for the photos, depending on your agreement with the client.
Contracts are voluntary legal agreements between two or more parties that outline each party’s rights and obligations. The complexity of modern business contracts, together with accounting procedures, employment regulations, disputes, and subsequent litigation, has made it advisable for businesses of all sizes to have their contracts in writing.