How To Prepare A Business Contract

Trying to make a business contract? To close the deal, you'll need a legal business contract in writing between the parties.
1.Summarize the basic terms of your agreement in writing. Before making a business contract, you'll need final agreement on all the terms. If possible, confirm these terms with the other party by email.
2.Find samples of the relevant business contract online. Depending on the type of business contract, there may be existing templates online. Modify these business contract templates to suit your needs and specific terms.
3.Draft a business contract using a sample agreement from Step 2 or create your own new contract using clear language. If you have a simple business contract, you may not need a sample agreement--it may be easier to make your own as a letter agreement that is signed by all parties.
4.Include all terms and specific agreements within your business contract. Read the contract. Confirm that you have written about the who, what, when, where, why and how regarding the terms of the deal.
5.Consider "what if" scenarios. Check that you have accounted for non-performance, lateness and default. Discuss any changes or new terms with the other party if applicable.
6.Send the contract to your attorney for review for a large business deal. For big investments such as a house or investment purchase, it's best to work with an attorney to ensure that your contract complies with the law.
7.Send two originals to the other party with a short cover letter. All parties should initial each page of the agreement and sign and date the last page. Follow up to get the signed contract back quickly. After the other party has initialed and signed the contracts, sign them and send one original back for the other party's records.

How To Create A New Business Contract?

When prepared correctly, business contracts are legally binding, whether verbal or written. You can enter into a business contract for real estate, equipment supplies or services. Written business contracts come in various forms and sizes. A contract might consist of one page, or it might have multiple pages in small type. For some businesses, contracts are synonymous with purchase orders, so separate contracts do not exist.
1.Review your current contracts to assess any advantages or disadvantages. For instance, if your contract is too informal, improve the presentation in the new one. Make sure all relevant information is included (e.g., your company's name and contact information).
2.Develop a contract draft with your choice of paper size, type style, color and images, as well as the content you want. For example, you could use 8½ -by-11-inch paper with the company's name either in large type on top or as part of the background in the page's middle. Describe delivery and payment terms, like whether you will accept credit for the buyer's account.
3.Assess your state's minimum legal requirements, which usually vary based on industry. For instance, many real estate appraisers disclose their license on their contract. If clients must pay sales tax because they are not nonprofits or the deal does not involve wholesale products, indicate how taxes will be calculated for each transaction. Include any relevant conditions for doing business, such as stating that all sales are final.
4.Compare different suppliers' prices. You can produce contracts yourself from your office or order them from FedEx Kinko's (fedex.com/us/office), Staples (staples.com/sbd/cre/programs/copyandprint) or Office Max (officemax.com).
5.Establish a computer template, like an Adobe PDF, so you can create a new contract easily and even transmit electronic versions as needed. Most states recognize business contracts sent electronically or by fax. Develop a method for organizing the contracts, such as saving a separate file based on the client and date.

Tips For Getting A Small Business Insured And Bonded

Running a small business can be fun and successful, but it is important to protect yourself from personal liability. In addition to carrying appropriate insurance, you may have clients who refuse to work with you until your company is bonded. That is always the case when working with a government agency, such as a city contract. You can obtain insurance and bonding in just a matter of hours, if you remain focused on the task.
Step 1
Create a list of services your company provides its clients. Bonding is based on services performed and provides a guarantee of payment for any issues that arise such as a contractor employee committing theft or doing damage on the client's property. A bond also guarantees that you will satisfactorily perform the work outlined in the contract within the contract's time line. A list of what services your company provides will allow the bonding company to better ascertain the premium for your company bond. It is important to be honest on the bond application. This will prevent any chance of the bond company refusing to pay if you ever have a claim.
Step 2
Contact a bonding company for a quote. Find bonding companies online or in the phone book. Interview several to choose the agent you feel will work best with you. Ask for price quotes and bond terms so you can do a comparison.
Step 3
Submit the requested information to the bonding company of your choice. The information usually includes the name, age and Social Security number of each employee. Once you receive the bond, you will pay premiums and receive a certificate of bonding that you can copy and hand out to potential clients.
Step 4
Make a list of the different types of insurance you should obtain. At minimum, you need to look at liability, property damage and auto, if you have employees driving for any reason.
Step 5
Contact local insurance carriers specializing in commercial insurance. Ask each of them for prices on individual types of coverage as well as what it will cost for you to bundle them in a comprehensive package. Examine issues such as deductible, claims process and customer service attitudes, not just price.
Step 6
Pay premiums for your coverage. Typically, you are allowed to choose to pay on a monthly, quarterly, semi-annual or annual basis. Remember to have your insurance needs reevaluated every few months to be sure you are maintaining the correct amount of coverage. Each time you hire a new employee who will drive on the clock, remember to add that employee to the insurance. This will require a copy of each driver's license and driving record report.