Contracts are the lifeblood of a business. It gives you the certainty that you are supplied with quality goods and services that are essential for your business. It also secures your revenue streams, setting the rules between you and your customers and clients.

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Contract review

When you’re doing business, you’ll often be asked to sign a contract. Take the opportunity to negotiate a good deal.

  1. Don’t just sign: Always read what you’re signing. A good lawyer will be able to quickly spot outrageous clauses you shouldn’t accept.
  2. Negotiate: When you’re given a contract to sign, use the opportunity to negotiate. The other side is not likely to insert clauses that are favourable to you unless they are asked.
  3. A contract is the record of the deal: Ultimately, contracts record the bargain that was struck. It is usually the first port of call when disputes occur, so make sure the contract accurately reflects the deal.

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Drafting a contract

It is always good practice to have your business dealings in writing. Take the initiative and draw up a contract.

  1. Set the tone: The advantage of preparing the first draft is that you get to set the tone and define the key issues in negotiations.
  2. Standard T&Cs: If you’re frequently dealing with similar suppliers or customers, consider standardising your T&Cs. This will save you legal costs and help you better understand your business relationships.
  3. Disputes: A good contract should address how to resolve disputes if and when they arise. Thinking about potential disputes from the outset can actually help you avoid them altogether.

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