business articles business management businesses Marketing sales Technology Business finance Lean Manufacturing small business Investing articles employee health
Search This Site
Custom Search

Business contract boilerplates for small business

A boilerplate is a section usually found at the end of an agreement that lists, in detail, binding legal provisions. This portion of a contract is often glazed over, but doing so could cause you a lot of future trouble. Those who simply glance quickly over these business contract boilerplates will often be "burnt" if legal action is taken against them. You should council with your attorney whenever signing any serious contract.

Now that you have your own business, you will be the one writing the boilerplate for your own business contracts. Your legal council is your best friend when you are drafting these documents, so do not underestimate his role in this process. Neglecting to receive all the legal help necessary at the beginning of your small business process can lead to devastating and destructive financial ramifications in the future.

Also, as with any legal document, be thoughtful in the reading and writing of the boilerplate. An unclear statement does you no good. Make sure that there is no room for miss-interpretation. Grey areas have no place in legally binding documents such as this.

Here are some provisions that you and your lawyers will most likely discuss when drafting your business contract boilerplate:

1. Merger Clause - The short and tall of the merger clause is that what has been put in writing and signed is final. There may be oral communication or other kinds of unwritten understanding, but when it comes down to it what is there on paper and signed is the governing force.
2. Arbitration - Arbitration in settling disputes is important to include in your boilerplate if you want to save yourself so grief in the future. Sadly, you need to assume that somewhere down the line someone is going to try to pick a fight with you and take money from your business. The Arbitration agreement outlines what can and can't be done in the settling of disputes.
3. Force Majeure - This clause basically protects both parties from extreme circumstances, beyond either party's control, that causes a breach of contract. A common example is that some catastrophic natural disaster prevents you from fulfilling your obligations (a.k.a. an act of God).
4. Modifications - Modifications of the agreement are typically only valid when in writing and signed by both affected parties. This clause in the boilerplate prevents either party from being un-knowingly made responsible for some sort of action.
5. Attorney's Fees in Case of Suit - This clause lays out the provisions to protect the party having legal actions brought against them from being burdened with excessive legal fees. For example, if someone wanted to sue you but they had signed that they would be responsible for legal fees, it would be their responsibility to pay for your defense.
6. Rights of Assignment - In this clause the drafter of the contract states that the contract cannot be assigned or responsibility referred to anyone other than the individual(s) who have signed the contract. In other words, the contract cannot trade hands and have responsibilities re-assigned.

As this process of drafting your own business contract boilerplate for your small business can be a bit tedious, it is important to have a legal advisor that you work well with. Make sure that as you choose your legal council that you choose an individual who has a working knowledge of the needs of your particular business. Also, make sure that there is a relationship of trust there. You are putting your future in your lawyers hands when you start writing up these documents, make sure that whoever you choose to work with is someone you feel has your best interest at heart.


Search our site for more information:

Rate This Post
  • Currently 0/5
  • 1
  • 2
  • 3
  • 4
  • 5
Rating: 0/5 (0 votes cast)

Categories: Legal and Compliance,

Share this article:
SocializerSocializer, DiggDigg, del.icio.usdel.icio.us, redditreddit, StumbleUponStumbleUpon

Favorites: Add to favorites
Tags:
Posted by DF
FREE: Get More Leads!
How To Get More LeadsSubscribe to our free newsletter and get our "How To Get More Leads" course free via email. Just enter your first name and email address below to subscribe.
First Name *
Email *


Get More Business Info
Business Info
Marketing and Sales
Technology
Finance
Manufacturing
Small Business
Investing
Employee Health and Fitness


Sponsored Links
Recent Articles

Categories

Search This Site
Search This Site
Custom Search

Syndicate This Information
Syndicate This Site!   Syndicate This Site!   Syndicate This Site!


Copyright © 2003-2010 by BusinessKnowledgeSource.com - All Rights Reserved
Privacy Policy, Terms of Use