We have many business clients who are hesitant to consider asking customers to sign contracts. But, we have yet to see a client who has regretted using one!
Too often this begins with a story about how long the relationship with the customer has been working just fine… or how the customer fears that anything in writing will scare business away. But, if you take time to truly understand what it is that you do, and how you interact with your best clients, contracts can be your friend.
For one thing, a contract does not have to be fifteen pages long! Most agreements can be properly addressed in one page. What can you say in one page?
A one-page contract can help to quickly and amicably resolve conflict if and when it does arise, and protect your business by:
1) ensuring that both parties understand the scope of work before work begins;
2) finalizing costs and payment terms;
3) creating a single document with critical contact information;
4) defining the procedure to modify the contract or its terms (scope of work, etc); and
5) outlining that a breach of the terms will penalize the breaching party (perhaps after providing an opportunity to cure the breach) and award the innocent party by providing fees and costs.
Contracts should not be taboo. So many people have seen thoughtless textbook contracts that quite frankly miss the point. A contract should reflect a simple “meeting of the minds” and outline the terms of an AGREEMENT. Nothing more. While some agreements may be too complicated to be reduced to a single page, many are not.
Time and time again, we have seen how much contracts help our clients resolve conflict in both good times and bad. It is much easier (and less personal) to explain your position when you can point to something everyone agreed upon. When crafted appropriately, the terms of the contract should simply encourage compliance and discourage unfair behavior. And, if someone is being impossible, it is the ONLY way to get them to pay for all of your trouble in proving them wrong!