As a Pennsylvania business owner, one of your biggest responsibilities is ensuring your business is protected. You have worked hard to create and maintain a thriving business and making a mistake can be costly. When you reach a deal with a supplier or client, you can’t rely on just a handshake to seal the deal. You must have a strong contract to protect your business interests and avoid disputes down the road.
Important elements of any successful business agreement
There are a number of important steps to follow to ensure a strong contract in a business deal. First, make sure the contract is in writing and accurately identifies the parties who are entering into the contract. Include a detailed description of the products and services that are included and what the contract is for. You want to identify how each party will fulfill the contract.
It is also important to identify the payment terms including when payments are due, who is paying and how the payments will be made.
Discuss contract termination. Every contract will eventually come to and end and identifying how that takes place is important. The contract should state whether it can be terminated at any time or just if it is breached.
Including a clause about dispute resolution can also help. Disputes can occur and having dispute resolution agreed to in advance can be important. A contract can state whether the parties will use mediation or arbitration to resolve a dispute.
It can be vital to negotiate with the right people and ensure their buy-in. It is important that the decision makers are the ones signing the contract. If the person signing the contract doesn’t have the authority the contract may be invalid.
Finally, keep the confidentiality. If the contract allows the other party access to your confidential information, then a confidentiality clause is critical.
A legal professional who is skilled in business law can help their client with any business contracts and make sure they are legal and written to protect their client’s business.