Business relationships can allow your company to take advantage of the skills and competencies of other industry professionals. If protected, these relationships can add innumerable value to your organization.
One way to protect your company is through the use of contracts. A well-written contractual agreement enables you to disclose your expectations from the start.
Writing a contract
Anyone can write a contract, but missing components could prevent some agreements from staying together in a court of law. According to Entrepreneur, some integral parts of a business contract include the following:
- Participants of the agreement
- A description of each party’s responsibilities
- Expected delivery dates
- Payment or benefits terms
- Applicable law clauses
You will want to collaborate with your legal team to verify that your contract contains all of the required parts. Writing a good agreement may require multiple drafts before signing.
Enforcing a contract
Sometimes disagreements prevent contracts from functioning the right way. As a result, you might lose some of the benefits of the agreement. Enforcing the terms of your contracts requires regular assessments. Within your contract, discuss what will happen during non-compliance. Disclose disciplinary measures, as well as under what circumstances the contract will void. Encourage communication between parties to verify that everyone understands their responsibilities, as well as feels satisfied with their benefits.
Developing contracts takes time. Maintaining them requires consistent effort. You will want to periodically update your agreements to reflect changes in your organization. With the right strategies, you can utilize contracts to protect your company as you create meaningful relationships that will support your organization.