Business contracts are very important for small business owners. When drafted properly, they can protect your assets while helping you to determine the scope of much-needed business relationships. From lease agreements to employee contracts, here are a few things to look for in a business contract.
- Termination clause – If there are going to be documents to dictate the business arrangement, there should also be a clause that explains conditions under which it could or should end. For example, what if you are unable to fulfill a lease because the business closes. What if your employee is not performing and you want to terminate employment? This should all be covered in the agreement.
- Force majeure – This is a fancy term for unforeseeable circumstances that may render a person unable to fulfill their part of the agreement. From the destruction of a building due to fire to an illness that takes someone away from work for months, the contract should explain what happens under such circumstances.
- Limited liability – What is the full extent of compensation should the agreement be broken? The penalty should be determined as part of the initial agreement, so either party knows the consequences of failing to do their part.
Help Navigating Business Contracts and Agreements
As a small business owner, you need the help of an attorney to ensure your business contracts and agreements are working for you instead of against you. Pokala Law APC can help. We offer affordable services for small business owners in the San Diego area. To learn more, call today at 1.844.695.1487, or you can submit an online request.