If you have your own business or you want to start one, it is important to have a general contract prepared and to know what to include in it. Read on to learn about ten important items that you should include in your contract.

Scope of Services

Write a summary of the scope of service, detailing specifically what you are going to do for your client.

Pricing and Payment

Be upfront by stating the exact price and payment terms: fixed rate or hourly rate, documentation, milestone tracking, and payment schedule.

Terms of Service

Describe terms such as the minimum length of the agreement and cases in which the contract may be terminated by the parties.

Ownership of Intellectual Property

Specify which party is responsible for keeping the project’s intellectual properties, i.e. source codes, documentation, digital files, website copies, images, graphics, videos etc. Usually, the client retains all the I.P. rights.

Confidential Information

Some clients prefer to keep all project details confidential. It’s crucial to mention the scope or limitation relating to the project information that can be kept confidential or can be revealed to others for marketing purposes.

Warranty and Disclaimer

Warranty is another important item you need to cover on your business/service contract. Give warranty on certain terms and conditions with specific disclaimers. For example, standard 30-90 day warranty is provided on all work to be functional and without bugs.

Limitation of Liability

In this section, you disown responsibility for financial losses resulting from things outside of your control, such as a hacker attack on the client’s website. Always include this clause to avoid issues in the future, should the project become unsuccessful due to factors outside your control. It serves as your protection in case of a financial setback.

Relation of Parties

Be clear about the type of relationship you have with your client, such as client-and-vendor relationship.

Employee Solicitation/Hiring

In this item, you might establish that the client cannot solicit your employees in any way when it comes to probable hiring or additional benefits.

Entire Agreement

This final part of the contract states that the entire document and its attributes fall under the whole contract and that nothing will supersede it. Both parties sign the client agreement, put a date and post their roles within the company.

As always, it is still best to consult with an attorney to make sure every detail of the contract is accurate and all important details are covered for your particular situation.

A business coach can discuss your business with you to help you brainstorm the items you might need to include in your contract before you present it to a lawyer.