{"id":929,"date":"2021-02-12T18:16:09","date_gmt":"2021-02-12T12:46:09","guid":{"rendered":"https:\/\/blogrevv.revv.so\/?p=929"},"modified":"2022-11-11T16:34:22","modified_gmt":"2022-11-11T11:04:22","slug":"best-contract-templates-for-small-businesses","status":"publish","type":"post","link":"https:\/\/www.revv.so\/blog\/best-contract-templates-for-small-businesses\/","title":{"rendered":"Best Contract Templates for Small Businesses – A Quick Guide"},"content":{"rendered":"\n

Contracts are documents that act as proof of details. <\/em><\/p>\n\n\n\n

Contracts help to maximize revenue and improve business value. <\/em><\/p>\n\n\n\n

Contracts are vital when it comes to business transactions.<\/em> <\/p>\n\n\n\n

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Legal contracts also act as business records between stakeholders and help build a rapport between customers or any other desired party. They also help avoid misunderstandings and protect proprietary information.As a business owner, which best business contract templates should you have for seamless business operations? And, more importantly, do you need legal advice or law firms to draft these contracts or agreement templates? This blog answers all of these queries.<\/p>\n\n\n\n

The basics (of a contract)<\/h2>\n\n\n\n
\"How<\/figure>\n\n\n\n

In the earlier days, there were very few written contracts, as deals (personal and professional) were done with a handshake. If there was a problem, stakeholders of the contract could take the issue to court, the judge would hear the case (even if there was no written document in place), and a judgment would be passed in case of a breach.<\/p>\n\n\n\n

While verbal contracts are still legal, all contracts in written form seem to hold precedence over verbal contracts as it is easier to enforce in the court of law. Written contracts are usually detailed, and every effort is taken to ensure that the contract lists all possibilities and eventualities, especially in case of a breach. This is what makes it a binding contract.<\/p>\n\n\n\n

Further, contracts are divided as unilateral and bilateral contracts<\/a>. <\/p>\n\n\n\n

Valid contract = Toot, toot to success <\/h3>\n\n\n\n

Besides being clear and specific, all contracts should meet certain criteria to make them legally enforceable<\/a>. All legally enforceable contracts are also known as valid contracts. What this means is that in case of a contract breach, either party can approach the court to help settle the dispute. This legal process or litigation helps decide if the contract has been breached or whether there are circumstances that can negate the breach. <\/p>\n\n\n\n

Read more about the six essential elements in a valid contract<\/a>.<\/p>\n\n\n\n

Now that we know that written contracts help safeguard the business, here is a list of some important contracts you need whether you are a freelancer or a service provider or own a small business.<\/p>\n\n\n\n

Protecting your business <\/h3>\n\n\n\n
\"How<\/figure>\n\n\n\n

Which contracts help protect your business?<\/em><\/p>\n\n\n\n

What are the different parts of a contract?<\/em><\/p>\n\n\n\n

Is an online contract valid?<\/em><\/p>\n\n\n\n

What are the consequences of not having a written contract?<\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

Do these questions keep you away from contracts? Then, let’s break it down for you.  <\/p>\n\n\n\n

A contract is a legal document between two parties. In a business, this is usually between a buyer and a seller of goods or services, which lists the details about the exchange of value between both parties. It includes information about payments, the types of goods, products, or services, and each party\u2019s responsibilities. A written contract enables either party to take legal recourse in case of a contract dispute. <\/p>\n\n\n\n

What is a business contract?<\/h4>\n\n\n\n

A business contract is signed between a business and a buyer and typically involves exchanging money, goods, or services. These contracts can be hundreds of pages long or can have just two lines to talk about the exchange. <\/p>\n\n\n\n

Business contracts only become legally binding when both parties sign them. These contracts typically range from sale agreements to service agreements depending on the type of business and industry segment the business belongs to. The business contracts  also includes disclaimers about the services or products offered.<\/p>\n\n\n\n

Revv Tip:<\/strong> Verbal contracts are also legally valid. But it usually causes a lot of confusion, especially around the roles and responsibilities, making a written contract a better option.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

If you are related to the real estate industry, here is a blog to assist you with the nitty-gritty of an under contract<\/a>.<\/p>\n\n\n\n

eSignatures and business contracts<\/h4>\n\n\n\n

In the year 2020, when social distance became the new norm for everything, the usage and popularity of eSignatures grew exponentially. But what about business contracts, does eSignature hold valid for these too?<\/p>\n\n\n\n

The short answer is \u2018Yes<\/em>.\u2019<\/p>\n\n\n\n

The long answer, according to the E-Sign Act of July 30, 2000<\/a> is that electronic signatures are legal and valid. This means that any digital business contract<\/a> that businesses receive online and are signed online is still enforceable by law. The E-Sign Act does hold certain provisions for safeguarding the integrity of electronic signature, including specific hardware and software requirements that software applications need to comply with.Revv Tip: If you still don\u2019t want to tread the murky waters of electronic signature and look for a faster and quick solution, Revv is here to help<\/a>. The eSign button in Revv lets you sign documents. Revv also comes with vetted templates that adhere to the legalese of the state.<\/p>\n\n\n\n

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Want to take the hard work out of electronic signature? Try Revv\u2019s eSign feature<\/a>\u00a0now<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\n\n\n\n

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What happens if you don\u2019t have a business contract?<\/h4>\n\n\n\n

When you have a contract, you are clear about your roles and responsibilities. You also have a clear roadmap providing all the deets of the other party, including their obligations. <\/p>\n\n\n\n

The absence of such documents gives rise to disagreements. This, in turn, increases the need for negotiation, which affects deliverables, and eventually, the business bears the brunt of it all. <\/p>\n\n\n\n

If your are scared of understanding contractual clauses, read this blog and overcome your contract clause fear in one go<\/a>.<\/p>\n\n\n\n

What are the different types of business contract templates? <\/h4>\n\n\n\n

Most business contracts fall under three main types of categories – sales, service, and employment-related. <\/p>\n\n\n\n

Sales contracts<\/strong> are legal documents that cover how property, goods, and services are purchased and sold. These documents provide the legal framework for the transference of titles. A common example of such a contract is a purchase order<\/a>. A purchase order is a legally binding document that commits a business owner to purchase an item or quantity of the said items at an agreed price point. It also specifies the delivery date and the payment terms. <\/p>\n\n\n\n

Employment-related contracts<\/strong> like an employment agreement or independent contractor agreements help define the employer and the employee\u2019s relationship. <\/p>\n\n\n\n

For example, the employment agreement contract specifies the job role, duration, compensation and benefits, grounds of termination, and any other issues related to your business, such as ownership of the work done. (The details and terms of the contract are explained below in the blog.) <\/p>\n\n\n\n

Lastly, service agreements<\/strong> <\/strong>help protect businesses that are selling services. These documents provide the necessary information like the type of service, the timeline in which the service will be provided, the service\u2019s contract\u2019s clauses terms, and other details needed to cover the parties\u2019 agreement. <\/p>\n\n\n\n

Some of the other business contracts include the bill of sale<\/strong> and partnership agreement<\/a><\/strong>. <\/p>\n\n\n\n

A bill of sale is an agreement between two parties that states who owns the property, when it was sold, how much it is worth, and who was the original owner. These types of contracts are often exchanged between the seller and the buyer. <\/p>\n\n\n\n

On the other hand, a partnership agreement helps define the relationship between business partners<\/a> and dictates the way in which the business is run. <\/p>\n\n\n\n

People also ask about business contracts:<\/h4>\n\n\n\n

What are the types of <\/strong>business contracts<\/strong> for <\/strong>small businesses<\/strong>?<\/strong><\/p>\n\n\n\n

There are three broad categories of business contracts – sales business contracts, service contracts, and employment related business contracts. Each of these contracts helps define the relationship between stakeholders, define the payment terms, provide the details of the contract\u2019s duration, etc. <\/p>\n\n\n\n

How do you write a <\/strong>business contract<\/strong>? <\/strong><\/p>\n\n\n\n

You can use simple language to describe the contract\u2019s clauses or take the help of your legal team to draft a contract template. Alternatively, if writing business contracts is scary, you can also use readymade customizable templates such as those available at Revv. (You can download and edit the contract templates<\/a> here.) You can read more about critical clauses that save you in uncertain times here<\/a>.<\/p>\n\n\n\n

What is the cooling-off period in a <\/strong>business contract<\/strong>?<\/strong><\/p>\n\n\n\n

In the United States, most business contracts come with a three-day cooling-off period. This allows them to cancel the contract within three business days of signing the contract. While this is applicable when it comes to the door to door sales or second mortgages and for certain goods and services like health club memberships, dating memberships, dance lessons, or timeshare properties, this law is not applicable in the automobile industry. <\/p>\n\n\n\n

Can you make a contract if your company is not registered?<\/strong><\/p>\n\n\n\n

You can always refer to your company as an unincorporated corporation in a contract. But remember, the general rule of thumb is that the promoter of the company can be personally liable for any contract breach. If your company is later incorporated, ensure that all of your liabilities are removed, and it now falls under the LLC or corporation. Otherwise, you might be jointly liable for the breach.<\/p>\n\n\n\t\t

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Want to take the hard work out of drafting contracts? Try Revv\u2019s contract templates<\/a><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n\n\n\n

Protecting what is yours<\/h3>\n\n\n\n
\"How<\/figure>\n\n\n\n

How do you protect your businesses from <\/em>Intellectual Property<\/em> theft?<\/em><\/p>\n\n\n\n

How do you protect your <\/em>confidential information<\/em>?<\/em><\/p>\n\n\n\n

How do you protect your business from employees trading secrets with competitors? <\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

The answer, my friend<\/em>, lies in the non-disclosure agreements and provisional patent applications. <\/p>\n\n\n\n

It is quite unfortunate that not every person or business keeps their word. Contracts such as a non-disclosure agreement or even provisional patent application help safeguard what is yours and what is theirs. <\/p>\n\n\n\n

What is a non-disclosure agreement or NDA?<\/h4>\n\n\n\n

A non-disclosure agreement<\/a> is a legally binding business document that is a must-have for any business entering into a negotiation with another company. This document outlines that even if there is an exchange of confidential information between the stakeholders, it will not end up at the hands of the competitors. <\/p>\n\n\n\n

What are the benefits of using an <\/strong>NDA<\/strong>? <\/strong><\/p>\n\n\n\n

Keeping confidential information confidential. <\/p>\n\n\n\n

The NDA\u2019s language ensures that the two parties cannot reveal any information regarding the other party or parties\u2019 business processes or plans. These plans can range from marketing, sales, how the business is run to that of trade secrets or even business plans.<\/p>\n\n\n\n

What are the different types of <\/strong>NDA<\/strong>?<\/strong><\/p>\n\n\n\n

There are three types of non-disclosure agreements, the mutual non-disclosure agreement, the non-mutual disclosure agreement, and the disclosure agreement. <\/p>\n\n\n\n

While the first one is signed between businesses and where both parties cannot reveal any sensitive information, the non-mutual one is majorly signed only by the employees. The disclosure agreement is often signed between parties when they need to reveal information. For example, a doctor might get into a disclosure agreement with the patient where he\/she reveals the medical history to an insurance company. <\/p>\n\n\n\n

Remember, an NDA is a legally enforceable document, and any violation can lead to legal penalties. But watch out for those pesky little NDAs that are too broad or vague. For example, in an attempt to protect your business, if, as an owner, you create a broad NDA that forces someone to remain silent about fraudulent activities, this document then can be voided by courts during an arbitration. <\/p>\n\n\n\n

This is why draft an NDA that defines the scope of confidential information, possibly, going as far as to explain why it needs to be protected like the \u2018chosen one\u2019 and how it directly pertains to your business. <\/p>\n\n\n\n

But what about patents? How do you protect, especially something that is yet to become \u2018yours?\u2019<\/p>\n\n\n\n

For that, there is something called the provisional patent application. <\/p>\n\n\n\n

What is a provisional patent application or PPA? <\/h4>\n\n\n\n

A provisional patent application or a PPA gives the filer a year\u2019s extension against the US nonprovisional patent application. The filer can use this year to experiment and perfect the patent, find a financial backup, determine the market niche, and find interested parties for licensing, etc., before the filing of the nonprovisional patent application. This also protects the filer from additional charges associated with prosecuting a nonprovisional application during this period. <\/p>\n\n\n\n

In short, it\u2019s a sure-fire way to obtain the \u2018patent-pending\u2019 status in the United States Patent and Trademark office.  <\/p>\n\n\n\n

Things you should keep in mind about the provisional patent application – <\/p>\n\n\n\n