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3 things to include in your business transaction contracts

On Behalf of | Jan 24, 2022 | Uncategorized

Every transaction your business completes is an opportunity for profit or risk. Your contracts help protect you from losses when doing business. Including the correct details in your transaction will maximize the protection you have while doing business with your customers, a supplier or a third-party service provider. 

Rather than just using boilerplate documents, you may want to draw up specific contracts for different transactions. What should you include in your business transaction contracts? 

Explicit details about your expectations and obligations

One of the most important things to include in a contract is exactly what you expect from the other party and what you intend to provide for them. Lack of communication is a common source of contract disputes. 

The more detailed you are about the services or goods involved in the transaction, the harder it will be for the other party to fail to deliver and then avoid responsibility. 

Something of value for both parties

If your contract only outlines the other party’s obligations to you, it may not be easily enforceable in civil court. Judges want to see fair and balanced contracts that offer valuable consideration to all parties agreeing to the agreement. 

Instructions for resolving a conflict or ending the contract

Disputes about contractual obligations arise all the time, and sometimes they end up in court. You can speed up the process of resolving a conflict by including instructions about your preferred dispute resolution system in the contract itself. You can also include rules that explain when the contract will cease to have authority. 

Being proactive about protecting your business when signing transactional contracts will make it easier to enforce them if someone doesn’t follow through with their obligations.