why do we need a contract… don’t trust me?

The word ‘contract’ incites numerous connotations of intimidating language, incomprehensible terms, and expensive fees. Unfortunately, this results in so many small businesses not using a written contract and thus leaving themselves open to disaster.

Ensuring a well drawn contract is in place does not create mistrust nor does it have to be expensive, time consuming or complicated. Simply, it is the basis for trust. If all the terms are written down in one place, there is little room for miscommunication, misinterpretation and missed deadlines. Whether you are the provider or the client, using a well drawn contract protects your valuable interests. It simply makes good business sense.

If you are apprehensive about asking a client to sign a contract, for fear that they will think you don’t trust them, don’t trust them! You simply have too much to lose by trusting them. A contract isn’t a replacement for trust; it is the basis for trust.

Written or verbal?
There is an argument that a verbal contract is just as good as a written one. Whilst that is true, how are you going to prove you have a contract at all, if it is your word against his? Take for example, a contract to rewire a remote farmhouse. If you are the contractor and drive 60 kilometres to arrive at the location only to find that the client has gone out for the day and not left a key, you will have wasted your transport time, petrol costs and you will have endured much frustration. With no contract, the client can simply say ‘we agreed the 21st, not the 22nd’. You can do nothing about it. You have lost a days work. Of course the same applies if you are the client and have taken a day off work to be available for when the electrician calls.

The bottom line is that by using a written agreement, you are more likely to avoid such pitfalls in the first place and second, you will have a course of action to compensate you for your wasted time.

Related resources: Business terms and conditions | Website terms and conditions | shareholder contracts

Subscribe To Site:

Full Post Feed | Summary Feed | Comments Feed