How To Draw Up Work Contracts
Use a work contract to outline the conditions of someone’s employment with your business or the terms under which a contractor is being used. Drawing up work contracts should not prove to be difficult since you have the information needed for the contracts already, such as the rate you will pay and the length of the contract or employment. In some cases, a contract is not a requirement, but it gives you and the person you are contracting with a sense of security.
Include your name and business name and the name of the person you are employing or contracting. If that person has his own business, include that in the contract as well. Write something along the lines of “This contract is made between Jenny Smith, CEO of Small Business, Inc. and Harvey Jones, freelance designer, on January 2, 2011.”
Explain the length of the employment in the next paragraph. For example, you may hire an assistant for an indefinite length of time or on a temporary basis. List the start date of the employment or contract.
Describe the employment or work to be done by the contractor in the next paragraph of the contract. For example, if you are hiring an administrative assistant, describe her general duties and responsibilities. If you are hiring a contractor, such as a freelance designer, explain exactly what the contractor will be doing — for example, building your company’s website.
Check Any Exclusivity Arrangements
One of the benefits of being a contractor is the ability to work on any number of projects for any number of clients. An ‘exclusivity’ clause restricts you from entering into contracts with other clients. You should carefully consider whether you want to agree to a clause like this. Make sure youre fairly compensated for being prevented from taking work elsewhere.
A court may not enforce an exclusivity clause that is too restrictive or unreasonable. The court will consider factors such as whether the clause protects only the genuine interest of the hirer, the period of exclusivity and the geographic area to which the clause applies. It’s best to have the contract clear so you don’t need a court to interpret it.
In What Situations Is A Commercial Contract Needed
The simple rule of thumb is that wherever a commercial relationship exists, you need a commercial contract in place to support it. This establishes the terms of the relationship by setting out the scope of the work, the rights and obligations of those involved, and whats expected of both parties.
A written contract is evidence of what has been agreed between the two parties and covers areas including the goods and services that will be provided, how payments will be made, timeframes for when the work needs to be completed, general working practices and termination of the contract itself.
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Describe In Detail What You Have Agreed To
Write the contract in plain language
The;contract;should be written in clear, plain language that is easy for everyone who will sign the contract to understand. This will help everyone know what they are agreeing to.
Describe what things of value are being exchanged. Write clearly what one;party;is promising to deliver and what the other agrees to pay or do in exchange.;
If services are part of the deal, state:
what services will be performed
who will perform the services, for whom, where, when, and for how long;
what will the person get for performing the services
For example, you could write:;
Catherine Thomas agrees to copy edit a 250-page manuscript for Jones Publishing by July 15, 2017 for a flat rate of $2,500.
If goods are involved in the exchange, state the make, model, size, colour, and any other identifying details of the goods. Also write in the delivery date.
If money is exchanged, specify the method of payment, and whether payment will be made in one lump sum or in multiple installments.;
If you are buying or selling land, provide a legal description of the property and its exact location.
Contracts involving real estate must be in writing
Contracts involving;real;estate;must be in writing in British Columbia. A lawyer or;notary public;can help you by searching the;title;to the real estate, preparing and reviewing purchase documents, and ensuring that the legal transfer is registered in the;land title office.
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Learn More About The Benefits Of Digital Workflows
Find out how the Adobe legal and government relations teams reduced paperwork and sped up contract completion and accuracy with Adobe Acrobat Pro DC with e-sign. By creating preapproved contract templates and establishing efficient workflows, these teams were able to shorten contract completion time by 73 percent.
What To Consider When Drawing Up A Legal Contract In Business
Disclaimer: If youre drawing up a legal contract in business, the following information should only be treated as a general guideline. It shouldnt, however, be taken as actual legal advice as to the legal nature of making a contract in business. To better learn the legal process regarding the subject matter, do contact an experienced lawyer now for more information.
When youre entering into a contractual business relationship, its best if you have a legal contract that binds you and the other party. A contact creates a legal obligation between parties involved therein. However, for a contract to be valid, binding and enforceable in court, it must include all essential information about the parties to ensure fairness. If you plan on drawing up a legal contract in business, below are the things you have to consider:
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Writing A Contract Agreement
When writing a contract agreement, it is necessary to state all terms and provisions clearly and succinctly to help reduce the risk of dispute over ambiguities. It is also a good idea to think about all aspects of the business transaction, such as any potential risks, and include contingency plans about how to deal with risks within the contract.
What Are The Risks Of Not Having A Commercial Contract
Without a commercial contract in place, any two companies who are doing business with each other are in a weak position if anything were to go wrong.
With effectively only a verbal contract between them, theres a risk that their understanding of what has been agreed between them may not necessarily be the same. If theres a dispute over services provided, or payment, or any other aspect of the business relationship, it can be much more difficult to resolve when they cant establish exactly what was decided between the parties in the first place.
Disagreements between businesses can sometimes end up in court. This can result in both parties frantically trying to piece together their case from conversations, text messages or emails to prove their respective sides of the argument.
When using unreliable or disputed evidence like this, the reality is that neither party will be able to paint a full picture of exactly what has been agreed. Its a case of one word against another and, in the cold light of a day in court, what once seemed certain might no longer stand up under closer scrutiny.
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What Is A Parent Plus Loan
A Parent Plus Loan, also known as a Direct PLUS loan, is a federal student loan obtained by the parent of a child needing financial help for school. The parent must have a healthy credit score in order to obtain this loan. It offers a fixed interest rate and flexible loan terms, however, this type of loan has a higher interest rate than a direct loan. Parents generally would only obtain this loan to minimize the amount of student debt on their child.
Do I Need A Solicitor
The short answer is no. If you are using an architect, they usually arrange the contact, or alternatively, you can go it alone. That said, its always advisable to have a building professional prepare a set of scaled drawings, plans and technical specifications before getting quotes from builders. These documents will form a key part of your contract and without them it will be difficult for the builder to know what the job involves. The more detail you have got in writing, or on paper the better. Otherwise, the builder can say, Oh I didnt allow for this or that in my costing, said Scot Masker of Masker Architects.
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How To Make A Contract
This article was co-authored by Srabone Monir, JD. Srabone Monir, Esq., is an Attorney for the 32BJ chapter of the Service Employees International Union. She received her JD from the St. John’s University School of Law in 2013. She is also a VA Accredited Attorney as of 2015 and is licensed to practice law in New Jersey and in New York.There are 18 references cited in this article, which can be found at the bottom of the page. This article has been viewed 369,740 times.
If you are creating a contract for goods or services, it is important that you protect yourself by ensuring that the contract is legal and enforceable. Knowing the elements necessary to create and execute a contract can help you create an appropriate legal contract.
Employment Law Is One Area That Is Constantly Changing So It’s Important That You Keep Up
Although UK employers are not obliged to give employees contracts every employer must provide a statement of employment, clearly laying down certain details, and it can be in your interests to include policies that are not needed by law, but that would be beneficial.
A recent study from the Economic and Social Research Council shows that 42% of managers have seen the number of unfair dismissal cases grow, and this can be a costly mistake for businesses. According to Jobsworth, which provides online employment contracts and polices, failure to be aware of changes can result in a fine of up to £53,000 for unfair dismissal.
To ensure you dont get caught out, follow the guide below to help you produce an accurate and up-to-date contract of employment for every one of your staff.
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Appointing An Architect To Administer The Contract
If you are hiring an architect, they can suggest an appropriate form of building contract and prepare drawings with technical specifications that outline your proposals. The Royal Institute of Builders publishes contracts, including one for homeowners embarking on smaller projects.
Hiring an architect as your contract administrator provides quality control over the build. The architect will make regular inspections, check the work is in accordance with the plans, reject defective work, deal with queries, keep track of cost and certify payments to builders. Unless you appoint someone else to administer the contract, this will become your responsibility.
How much or how little you commission an architect to do is up to you from initial design to completion on site. Architects fees vary with location and the size of the job.; Some architects base their charges on a percentage of the total build, others as a fixed lump sum or on an hourly basis.
Make Sure Your Contract Is Enforceable: Work With A Lawyer
Writing a business contract that protects your interests while balancing your business objectives is critical to your business’ success. But while you should get acquainted with the legal terms and processes for writing a contract, sometimes it’s best to have an attorney review your contract before it takes on the force of law. Get started today and find a small business attorney in your area.
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Write Into The Contract Which Laws Apply And How Disputes Will Be Resolved
Some laws are provincial and some are federal. Make clear what laws you have in mind when you write the;contract. If you do that, should a dispute arise, a court or other decision-maker would know what law you intended to apply to your contract.
The laws of British Columbia and the laws of Canada applicable in that province govern this agreement.
Write down specific ways that you will resolve any dispute. Consider adding a;mediation;or arbitration clause. These are ways to resolve disputes that are less expensive and time-consuming than a court action .;
For example, a mediation clause might read:
If a dispute arises out of or relates to this agreement, and the dispute cannot be resolved by negotiations between the parties, the parties agree first to try in good faith to resolve the dispute by mediation before resorting to arbitration, litigation or some other dispute resolution procedure.
If a dispute has to go to court, state where that will be:;
The parties agree that the courts of British Columbia will have exclusive jurisdiction to hear and decide any litigation which may arise out of or relates to this agreement.
Pick A State Law To Govern The Contract
If you and the other party are located in different states, you should choose only one of your state’s laws to apply to the contract to avoid sticky legal wrangling later. In addition, you may want to specify where you will mediate, arbitrate, or bring legal actions under the contract. This will simplify your life if a dispute does crop up.
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Deal With The Right Person
Don’t waste time negotiating a business agreement with a junior person who has to okay everything with the boss. If you sense that this is happening, politely but firmly request to be put in touch with the person in charge. Make sure the person you negotiate with has the authority to bind the business and has a vested interest in making sure the business performs its obligations under the agreement. If you’re not sure who that is, ask. In a smaller business, it might be one of the owners; in a larger organization it might be a chief executive officer or chief operating officer.
How To Draw Up A Sales Contract
A sales contract is legally binding and protects both buyer and seller interests in the transaction. Drawing up a sales contract requires the inclusion of several important elements to avoid future disputes. Although a verbal contract is legal, a written contract is typically more enforceable in a court of law. The fundamentals of a sales contract are similar for all businesses, but contracts vary depending on the product or service provided.
Include the buyer’s and seller’s legal name and address at the top of the contract. Indicate the word “Buyer” or “Seller” next to the appropriate party’s name. Add a clause stating that each party is willingly entering into the agreement.
Provide a contract section acknowledging that the seller agrees to sell the product or service to the buyer. Indicate the total price and specifically define the product or service provided.
Write a section for payment terms, if needed. Include information explaining when the payments start and the amount of the periodic payments. Define acceptable forms of payment. Add a statement showing the seller retains ownership of the product until all payments are received in full.
Compose warranty terms. Clearly define the promises and liability limits assumed by the Seller.
Address the issue of arbitration in a separate section. State that an effort to resolve disputes through amiable negotiation is desired by both parties.
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Examples Of Description Of Services
Good example of a description service -;Lee will deliver training sessions in Biz-Fast software to 15 staff from Rekall Ltd. Sessions will be held on 10 and 11 May, starting at 9am, with each session lasting 3 hours. Training will be conducted at Rekall Ltd, head office in Bigtown. The training services will include providing a Biz-Fast software user manual and a one-page help sheet for each trainee.
Bad example of a description service -;Lee will train Rekall Ltd employees in Biz-Fast software.
You may have already discussed the work with the hirer or done similar work for them in the past. However, its still important to set out all the relevant information about the work in the contract. Otherwise there might be confusion later. If the contract contains a complete description of the tasks, youll be able to refer to it and check what must be done.
Generally, state what the required service or expected result is. You dont need to detail how it will be done. Giving directions on how to perform the work is more like an employment relationship than a contracting relationship.