5 Surefire Ways to Scare off Prospects with your Contract

You work hard to develop your business – don’t let an opportunity slip through your hands because of an inadequate contract.

 Here’s WHAT NOT TO DO WHEN PRESENTING A CONTRACT:

DON’T-

  • Make it all about you: Only include protection for yourself and make no mention of what the other party is guaranteed to receive.

 

  • Present a lengthy and over-written contract: Present them with a 20 page contract full of legal jargon and small print, when a six page would have provided the same level of protection.

 

  • Don’t take the time to understand your own contract: Avoid questions of clarification.

 

  • Overstate your ownership of Intellectual Property: Make it know that they are darned lucky to be working with you and your creative mind.

 

  • Make them feel untrustworthy: Interrogate them and ask for irrelevant information like Social Security numbers and fingerprints.

 

Always take measures to protect yourself and your intellectual property because everything that happens from start to finish is based on the contract.  Remember that the purpose of a contract is to describe what is expected by each party.  Although you need to make sure that all details are included in your agreement, this can often be accomplished in a reasonably brief document that everyone involved can understand.

Andy Zulieve is a business attorney & Intellectual Property Specialist with over 25 Years experience. His areas of practice are: complex contracts, construction law matters, trademark & copyright, trade secret, unfair competition and business structuring. From his office in Lincoln County Maine, he serves clients both nationally and internationally.Andy_edited-1

 

Contracts: Myth #1 – A Handshake Seals the Deal.

It’s great to have trust…I’m a fan of trust. Success in business unquestionably requires some willingness to cooperate with and have faith in others. However, when it comes to business, I cannot tell you how many oral agreements have led to misunderstandings and legal disputes; the details of which can be difficult or impossible to prove in court. In certain situations, written agreements are mandatory…good to know just in case you wake up one day and find yourself in a lawsuit.

You should put most every agreement in writing- some examples are:
• Partnership Agreements: They spell out terms and expectations of owners and help to settle in advance what happens if one owner wants to leave the business or when partners disagree about things. (that never happens right?)
• Employee Agreements. Make sure that when hired, employees sign nondisclosure agreements so they keep your valuable trade secrets (pricing, formulas, recipes etc.) confidential.
By Maine law, you must put the following in writing:
• The sale of goods for more than $500
• The sale of real estate.
• Agreements that take longer than one year to complete.
• Home Construction Contracts for more than $3,000 in materials and services are now required to include specific information and be signed by both parties.
Many business owners try to save money by doing everything they can by themselves including contracts and other agreements. Doing some legwork can really reduce the cost of legal fees – but are not a substitute for a good legal review to make sure that your interests are well protected.

Be Diligent- Be Proactive- Be Safe.

Regards,
Andy