You want to sign a contract?! Why on earth do we need to sign a contract? Can’t we just do this on a handshake? Can’t I trust you?
Well, you could but both parties are leaving themselves wide open for potential hassles that a signed and agreed upon contract would eliminate. If you feel nervous asking your clients to sign a contract, consider these points:
- Contracts provide a description of responsibilities. Rather than suffer through the confusion of wondering what each party’s responsibilities are, you’re better to have everything in writing. This will help avoid confusion or disagreement.
- Contracts bind parties to their duties. It is incredibly disruptive if one party attempts to back out of an agreement. A contract will bind the parties to the previously defined description of duties eliminating this problem.
- Contracts can establish a time frame for duties. If you need work performed and performed within a certain time frame a contract binds the party to that time frame. As a consultant, you might want to require the other party to provide adequate and timely access to key personnel, for example.
- Contracts can secure payment. No one likes to be stiffed for work performed and a binding contract provides a written legal document establishing an agreement to be paid for services rendered.
- Contracts provide recourse when the relationship falters. If the relationship between the contracted parties deteriorates, a contract outlines the previously agreed upon steps required for dissolving the relationship without punitive measures.
Now, doesn’t that sound better than dealing with the chaos that can erupt when a handshake deal falls apart? Stick with a contractual agreement — it can eliminate a lot of hassles.
(Note: I’m not a lawyer and this isn’t legal advice in any way, shape or form. If you’re looking for a lawyer or a contract, I recommend USLegalForms.