What Contracts Mean to your Business

Did you recently start up a company? Do you know if your contract contains provisions to protect you from liabilities or gives you a legal right to enforce the customers to pay for your work? If not, then this article will guide you to create a well-drafted customer contract.  If you think your current customer contract is well-drafted, then maybe this article can give additional insight and additional provisions to consider.

First, what is a contract? A contract is a promise or set of promise that is fulfilled for consideration (usually money). Furthermore, when there is a breach, the law will provide a remedy. This is where the contents of a contract become crucial for your company. Each company has their own purpose or function, therefore, when you form your company, it is important to hire a competent lawyer to draft key provisions that will not only protect your company but also benefit the company in the future.

In general, your customer contract should contain the following provisions: Terms and Termination; Breach and Remedies; Enforceability through Click-Wrap Agreements (if applicable); Notice of Amendments and Revisions; Privacy Policies; Disclosure and Enforceability; CCPA; Confidential Information; Residual Clauses; Master Services Agreements; Explanation of Legal Terms; Warranty and Disclaimer; Indemnity; Limitation of Liability; and general boiler plate terms.

Of course, the provisions above are not an exhaustive list but they should cover the general provisions of a customer contract. At SAPG Legal, we will guide you and help you draft key provisions to protect and ensure your company’s success.