Keirnes Law

New Business Mistake #3: Not drafting a standard form contract in favor of your company

A time and money-saving tactic that all new companies should engage in, is having a standard form contract that they can tailor accordingly. Coming up with a standard contract does not have to sound as daunting as it does. Companies should often rely on contracts that exist in the industry and adjust them to their specific goals. The key is to start with your form of contract, and hope the other side doesn’t negotiate it much. Here are suggestions when coming up with your own form contract.

  • Get sample contracts of what other people do in the industry. Use that has a baseline and tailor it to your needs.
  • Make sure to have a business attorney look at and assist in drafting the contract. Attorneys know what to look for and how to prevent problems down the line.
  • Make it look like a standard pre-printed contract with appropriate text font and size.
  • Keep in mind length. Contracts that are too long are not perceived well by the other contracting side.
  • Make sure billing and prices are spelled out very specifically and legibly.  I often make the typeface bold to draw attention to it.
  • Try to limit warranties when possible.
  • Include a “force majeure” clause relieving you from breach if unforeseen events occur.
  • Include a clause indicating how disputes will be resolved, often a mediation or arbitration clause is recommended.

Please contact Keirnes Law Firm if you  have any questions or need assistance drafting your standard form contracts.

Tags: business attorney, business lawyer, contract law, contracts, small business, standard form contract, startup
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