CONTRACTS

Contracts

Contracts

Introduction

Business contracts are an important part of conducting business and even more important if your business operates online. This vile piece of paper describes the job duties in detail, delivery time, payment terms, and legal terms of conducting business between the client and you. Without a business contract that addresses expectations, procedures, and policies, it's likely you'll find yourself in a dispute at one time or another.

A business contract, as commonly understood, is an agreement that legally binds two consenting parties for an exchange of product and/or services for monetary considerations. There are also other types of business contracts that may not involve any transfer of goods or services but instead are agreements between two companies for business collaboration.

A business contract is meant to be acted upon by both the signatories, and a breach of contract will entail legal proceedings in a court of law with payment of damages by the defaulting party. The one assured way to avoid possible litigation is for the two consenting parties to carefully study all the agreement clauses and satisfy themselves that they are all capable of fulfilling their promises.

Contract Basics

The business contract keeps the work legitimate and protects both parties.  It's essential that both parties agree to the terms outlined in the contract and acknowledge their agreement with an authentic signature.  For every transaction that requires you to conduct a different task for your client, you need a business contract.  Some clients may not like this idea, but then again, this is a procedure that ensures both parties keep to their end of the deal.

At one time, a handshake or someone's word was all a business deal needed.  Today, transactions are a lot more complex and it is helpful to come to an agreement in writing regarding the responsibilities of both the virtual assistant and the client.

A business contract also provides a sense of security to both parties to knowing they are on “common ground” in regards to the business relationship.  A well thought out contract helps alleviate potential problems by addressing them before they actually take form.

Four Common Types

Business contracts are created to suit the situation and on an “as needed basis”, for instance:

Work-for-Hire: Companies create a Work-for-Hire contract when they are hiring an outside contractor to perform certain tasks.  The contractor works independently and is responsible for claiming the money he or she makes to the IRS.

Confidentiality or Non-Disclosure: This contract protects the company's personal and confidential material.  If the company is sharing valuable client information or trade secrets, it is important that this contract be in place.  By agreeing to this type of a contract, the independent contractor is agreeing to NOT disclose business information or use trade secrets for personal gain. 

Non-Compete: This type of a contract stops the independent contractor from competing with your business or stealing your ideas.  Anyone that he or she comes in contact with must be addressed as your client, not theirs. 

Service Agreement:  A service agreement is common among online business ...