How to Create a Business Contract in Microsoft Office Word
If you think you have seen it all in business, you have to think again. From a garage built-in flower shop to tech-based stores, small businesses operate in many forms and shapes. Based on the data from Forbes, the U.S. Small Business Administration (SBA) reported that more than 50 percent of Americans own or work for a small business. Moreover, these businesses are beneficial and drive the economy. Huge companies like Walmart and General Motors do not create 2 to 3 new jobs in the United States each year, rather small businesses, Forbes said. It looks like start-up businesses have big shoes to fill. Since small and medium-sized businesses (SMB) owners are responsible for the significant areas in the business, such as operations, finance, sales, marketing, human resources, or customer service, being an owner of a business in this magnitude takes a lot of work.
Here's a list of things you need to know in crafting a business contract. Read the steps below and create a useful business contract in Microsoft Office Word.
1. Know the Contract Requirements
Contracts permeate almost every part of our business life. Having that said, contracts have something special, and it is that it binds business dealings between two parties. So making a business contract is very crucial, and it does not only weigh on the contractor's side. Hence, both parties have a fair share of terms to follow. It could be the end of the bargain if one business party does not hold up to its end. Considering the requirements of a business contract and implementing it is beneficial to the agreement's bond.
2. Consider Contract as a Document
Making a contract will involve you in writing. Not just simple writing, but you should write the contract formally and technically or in other words in a business manner. Also, you have to consider writing the agreement as a document. As a contractor, study the parts of a contract, which are the introduction, explanation of key terms, the purpose of the agreement, obligations of the parties, assurances, signature blocks, and attachments.
3. Get Into Writing; Keep it Simple
Oral agreements are legal and binding. However, they are difficult to enforce by the law. If you notice, businesses write down contracts; even the law does not require it. The main reason for that is a written agreement is less risky since the document clearly drafts out each party's obligation in case of disagreement.
4. Be Specific with Details
When it comes to money, silence in business is rarely golden. Of course, money is the lifeblood of a business, and without it, a business cannot operate and plan. When you make a business contract, make sure to specify who pays whom. As you know, money is an argumentative issue, and you must be very specific when it comes to details. Moreover, be particular with the timeframe of the payment and the method of payment.
5. A Contract Is a Process
Before reaching a deal, making a contract will undergo the process as it caps off with an agreement. It is normal for a company to first predict the future of the deal. After that, the parties involved can agree on terms and enforce them to settle with mutual obligations.