Getting Things Right With Business To Business Contracts

Your small business probably enters into more contracts than you think. Every time you buy something, or sell something, you are entering into a contract. It doesn’t matter if you have, or your client has, to sign something or not.However, every single time you enter into a contract, it’s unlikely you can afford to draft in a lawyer. This is perfectly normal – companies usually only involve lawyers in contracts when they are doing something that their standard terms and conditions aren’t suitable for. It is worthwhile speaking to your lawyer about how your small business could use standard terms and conditions to govern the relationships you have with your clients. That way you’ll be better equipped to handle any unexpected problems that may arise in the future.As a small business owner, knowing the basics of contract law is vital to understanding what is binding and what is not. However, when you are not sure about anything, it is usually best to first consult with your lawyer who has had experience in dealing with similar issues in the past.  Your accountant may also be able to help with some small business legal issues.When Do You Know A Contract Has Been Formed?When one side makes an offer and the other side accepts without qualification a contract is formed. This can be done in writing, through the signing of a contract, over the telephone, in an email, or in person. Therefore, your company doesn’t have to start the work, or your client does not have to pay you before a contract is formed. They are bound to pay you, and you are bound to do work from them, from the moment the offer and acceptance takes place. If both parties agree, however, the contract can usually be cancelled.How Do I Make My Standard Terms Apply?If you have standard terms and conditions of trade, that you want to be included in how the courts will interpret your contract, then it’s not simply enough to have them. Your client needs to know about them and, in most cases, accept them too. If your sales process does not allow for your client to review the terms and conditions before you close a sale, then make sure your sales agent covers the main points of the contract when speaking to the client. Then send a copy of your standard terms out to the client directly after you close the sale, and on the back of all invoices from there.What If The Company Promises Something And Their Terms and Conditions Don’t?If you’re buying something from a company, and they tell you something over the telephone or in person then it will usually be fine. In legal theory, it should form part of your agreement. That is, unless the terms and conditions contain a clause limiting the agreement to what is said in the agreement. However, it is best practise to write, or send an email, to the company and clarify the points discussed in your conversation and ensure the company’s agent responds accepting that they agree with everything that you have stated.