Biz Extra

Published: March 27, 2023 | Updated: 28th March 2023
Zoe Watson joined Frettens in late 2022, making the Company & Commercial Team one of the most experienced in Dorset.
In this Q&A, Zoe answers your questions on making a strong business contract.
Contracts in business should be used to outline both parties’ obligations and protect your business and its legal position.
It is surprising though how many businesses are reliant on a key product, client, customer or supplier but have no written contractual arrangements in place with the person or company involved.
At least a contract with a notice period will give a grace period if the worst happens.
Any contract should record the commercial deal which has been reached and include a clear and unambiguous description of who does what and when.
In addition, contracts should include a clear statement of what the contract provides for, the timescales that apply, what the guarantees and quality standards will be and how goods or services will be paid for.
Next, consider what additional terms can be included in order to enhance the contractual and therefore legal position of the parties – and help to protect their businesses.
Appropriate inclusions depend on the importance and value of the contract from the point of view of both parties.
Here’s a checklist of terms that can help to protect your business’ legal position:
Finally, you should consider how variations to the contract are going to be dealt with.
I recommend that any agreed variations are clearly recorded, and variations are costed out and then incorporated into the price to be paid.
I’d also suggest that any further amendments and additions are incorporated into the contract addendums so that the whole history is recorded and agreed.
In my experience, those businesses which give priority to having in place effective and modern contract terms, which can protect the interests of the business itself, appear more professional and gain respect from the organisations they deal with.
When things go wrong or threaten to go wrong, the work carried out on contract arrangements can prove decisive.
Click here to read the full article. If you would like some tailored advice on your business contracts, please don’t hesitate to get in touch with our bright team.
Our team have experience in drafting effective and legally sound contracts, covering areas such as Ts and Cs, franchising, shareholder, partnership and LLP arrangements, personal guarantees and more.
You can call us on 01202 499255, or fill out the form on our website for a free initial consultation.