Running a business can be a strenuous undertaking, and if companies experience growth, they may need to work with outside companies in order to complete certain projects. If you have recently decided to team up with an individual or another business, you want to ensure that you and the other party understand what the business relationship will involve.
One of the best ways to go about ensuring that everyone is on the same page is by creating a contract. If this is your first business agreement with an outside entity, you may feel a little hesitant about creating a contract, but fortunately, you can receive help with drafting your business agreement.
What should the contract include?
The specific details of your contract will depend on the exact nature of the arrangement and what each party expects. Still, some standard terms you will likely need to include in your agreement include the following:
- Confidentiality: You and the other party may have information about the project you wish to keep confidential, and having terms indicating that need can better ensure that both sides comply.
- Duties: The contract will need to include terms that show the duties and responsibilities of each party. You may also want to include details explaining prohibited actions.
- Dates: Dates are important to include in the contract so that everyone involved stays on the same timeline. For example, you may need the other party to complete a portion or all of a project by a certain date, and having that date in the contract can make sure the other party is aware of and agrees to that stipulation.
- Payment: If you enlist the help of an outside party, you will likely need to compensate that party for the services provided. Because disputes over payment or nonpayment can be intense, having terms detailing the amount of payment and when the other party can expect payment is wise.
As mentioned, you may have various terms to include in your contract that apply to your specific business relationship. If you hope to create a detailed and legally binding agreement, you may want to work with an experienced Virginia attorney who can assess your business relationship and draft a document that includes terms that will benefit your company and protect your interests. Your legal counsel could also advise you on how to handle any disputes that may arise involving the contractual agreement.