Whether you’re building a new business or you’re a seasoned business owner moving towards expansion, you’ll come across several types of contracts your BC-based business may need.
Contracts are a great tool for establishing expectations and mitigating potential conflict with your business relationships.
The 5 things every small business owner should know before signing a contract
1. You are allowed to negotiate
Some contract terms may not align with the type of agreement you’re trying to reach with the other party and may need to change.
Negotiate the terms and conditions to make the contract fit the intent of the parties involved, and always ask questions if there is something you don’t understand.
2. Know how to terminate the contract
There are a few different ways to determine if the contract can be terminated. You can always terminate a contract if the other side breaches a term of the contract, but you should also ensure that there are options for voluntary termination so that you can exit the contract if you feel like it’s not working. There also might be a “cooling off” period clause in the contract where either party can terminate the agreement without providing a reason.
3. Keep a copy of the contract
Keeping a copy of the contract is especially important if you are ever unsure about anything presented in the document. It is always beneficial to refer back to it if anything seems unclear. One thing to note is that if there are any legal issues in the future, you may be asked to produce a copy of the contract. Small business lawyers will always keep a copy of the contract as well.
4. Understand every part of the contract
Contracts are often written specifically for people who understand legal jargon. It is crucial to know what is being said in your contract.It should not be misleading or have unfair terms that allow one party to take advantage of the other.Small business lawyers are there to help with anything that sounds complicated to avoid misunderstandings. Your lawyer wants the best for you, and there are no such things as silly questions. Your business lawyer will want you to be very aware of what you are signing.
5. The most important thing to know when signing a contract
Signing contracts is usually time sensitive, though you should never feel rushed to sign. If the other party tries to pressure you into signing without obtaining legal advice, you might miss something important that you may not understand or agree with. Always have your small business lawyer review contracts before you sign them, no matter how much pressure the other side is putting on you.
If you have any questions about signing contracts, or if you would like to know more about our small business law services, please don’t hesitate to contact us!