Spiders are scary…

Business Owners: For what you must know before signing a contract, watch this short video

As a small business owner you have a lot on your plate. You’re responsible for your business in every aspect of it and there’s a lot that you have going on-from meeting your payroll to supervising your employees to making sure your products and services are being given to your clients in a manner that you want. It is a lot to keep up with. So don’t be tempted to not sit down with a contract that you’ve been presented with for either a purchase of business or services. Don’t be tempted not to give your full attention to the contract. So here are three things to keep in mind as you look at the contract that’s been presented to you.

The first thing may seem obvious and basic but it is to read the contract from start to finish. It is so important to do that and you’d be surprised at the number of people they don’t actually read the contract Word for Word. It is very important that you do that because what is going to be in the contract in written form is what’s binding. So some things to look out for as you’re reading it is the terms of the contract- specifically the length of the contract. If you are intending to enter into a 12 month agreement make sure the contract says 12 months and not 24 months for 36 months because what is in writing in the contract is what is binding. Same thing with the conditions of the item that you’re buying or the services. If you’re told that the item that you’re buying is in perfect condition but in the written contract it says As Is, well the language in the contract that’s what’s going to be binding and you’ll be stuck with something in the condition of as is when you were told verbally that it would be pristine. So make sure again that you read the contract and look out for these things. Also it is super important to know how you are signing the contract. Are you signing a contract as an individual, personally, or are you signing the contract on behalf of your business? If you’re an S Corp. or if you are an LLC make certain that the title of your company is what’s reflected in the contract that you were signing on half of your company and not that you’re signing personally because then you will be personally liable. So make sure that if you’re signing on behalf of your business that your title whether is president secretary treasurer or whether your title is managing member or manager. However your title is for your company make sure that is how you are signing the contract and put that title with your name as you sign it. If you have maybe not done some of these steps and you need help now be sure and call a civil litigation attorney today or if you don’t want to have to sit down and do all of the reading and making sure all the terms or what you thought they were be sure and hire an attorney today.