The Importance of Business Contracts

As a business lawyer, I know that a lot goes into protecting a business. Trademarking, keeping up with legal tasks, taxes… They all come together to create a bubble guarding your business. One thing that gets overlooked quite a bit, though, is business contracts. 

Whether you are a service provider or working with other companies, contracts are more than just paperwork. They operate as legal protection for you and your business. Let’s get into everything that having a clear, enforceable business contract can mean for your business. 

Why Do I Need Business Contracts? 

My business is all about protecting your business. I’m here to help you avoid headaches, whether it’s a minor dispute or a full-fledged rebrand because of trademarking issues. 

One of the simplest ways to ensure that your business is protected is by having a strong contract, and here are a few of the reasons I always tell my clients that business contracts are worth their investment: 

• Business contracts protect your business from legal risks


• They clearly define your roles and responsibilities


• They prevent misunderstandings long before they start


• You can secure payments and timelines 


• They set clear expectations with clients & partners


• Having a solid contract strengthens professional credibility


• Time, money, and energy are saved by avoiding disputes


• You can protect your intellectual property 


• They create consistency in your business operations


• They give you peace of mind, so that you can focus on growth

  
  

Who Needs Business Contracts? | Different Types of Business Contracts

Realistically, every business should be using contracts. The difference will be the types of business contracts that you actually need. Let’s get into some of the most common kinds and talk about what they really mean for your business.

Sales Contracts

Sales contracts detail rules between transactions. Things like payments and timelines can be specified on a sales contract, and these protect both buyers and sellers. Anyone selling high-ticket or made-to-order products should have some sort of sales agreement as one of their business contracts. 

NDAs (Non-Disclosure Agreements)

You might hear “NDA” and think that we’re talking about top-secret information and celebrity drama, but in the world of business contracts, that’s not quite the case. NDAs can protect businesses from having resources like intellectual property and trade secrets stolen.

Vendor + Supplier Agreements

Any form of partnership in your business, even a vendor/supplier relationship, should have terms outlining expectations and processes. If you’re in any sort of business where you buy goods from a wholesaler (or you are the wholesaler yourself), it’s always recommended to have terms protecting the interests of both parties.

Partnership + Shareholder Agreements

Creating a contract that outlines partnerships and profit-sharing early on can avoid a lot of trouble down the road. This is another business contract where terms should be clear and enforceable, as to protect everyone’s best interests. 

Service Provider Contracts

Lastly, if you’re in a service-based business, outlining expectations in a contract that covers things like payment terms, timelines, and quality standards is extremely important. Today, it’s also worth adding an AI clause, too, to fully protect your business and its property. 

Quick Tips for Creating a Clear + Enforceable Business Contract

While we’re always here to help you create business contracts that stick, here are a few quick tips to ensure that your business contracts are protecting you, and of course, enforceable: 

• Outline who the contract is between, what it’s covering, and why it’s being written

• Cover all the important details (payment terms, timelines, termination procedures, etc.) using clear, plain language 

• Detail dispute resolution 

• Ensure that your contract is valid

  
  

Lindsay Lane Law | Business Lawyer

Whether you need a contract reviewed or a legally enforceable agreement drafted, we’re here to help. You can schedule a call with us here, and we’re happy to help you create business contracts that stick and that will help you for years to come.