Contracts are essential to business. You need to have a written contract for goods and services. Depending on what goods or what services you are selling, it may be required. Depending on where you are located, it also may be required under the UCC (Uniform Commercial Code). You may be required to have it in writing. Just be careful and consult with a lawyer in your area.

Often times, deals are done with handshakes. For example, I have had someone tell me that he was promised 38 percent of someone’s company. Where is this written down? Another person told me that he had loaned someone $15,000.00. Where is this written down? Have a written agreement is SO, SO important.

Here are five questions to consider:

1. When will it begin and end?

There needs to be clear terms of the start date and the end date.

2. How will my business get paid?

How are you getting the money? What are the payment terms? Outline how you will get paid whether it’s via cash, check, certified funds, or any other means.

3. What goods and/or services are you providing?

Define this in the contract. This is sometimes known as deliverables.

4. Who is the point of contact?

Who are you contracting with? Sometimes I see agreements with no addresses. Have a point of contract. We are in the land of pandemic season and it is not going anywhere so you need have a good point of contact if you need to cancel or reschedule. Who are you calling?

5. What happens in the event of a dispute?

You need to have a contract that outlines these terms. For example, where would the suit be filed in the event of litigation, or where do you send your demand letter.