Terms and Conditions for Small Business Contracts
Small businesses need to invest time in developing contracts they use for their business. Contracts protect the business in case of disputes and lawsuits. A Maryland contracts attorney assists small business owners in negotiating contracts, drafting terms and conditions, and representing the company when there is a dispute or breach of contract.
The Elements of a Valid Contract
The first step in protecting the company’s best interest is ensuring that there is a valid contract. Contracts are tailored to specific situations. However, basic elements must be present for a contract to be valid.
The basic elements of a contract are:
Offer
Acceptance of the offer
Consideration (i.e., money, exchange of goods, services, or something else of value)
Mutual obligation (both parties are bound to the terms of the contract through performance)
Competence (legal capacity to enter into a contract)
Including terms and conditions in a contract or agreement appropriate for your business venture is as important as ensuring you have these basic elements in each contract and agreement your small business uses.
In addition, it is critical to understand the terms and conditions that outside vendors and government contracting clients bring to you.
What are the Terms and Conditions of a Contract?
The terms and conditions of a contract define the responsibilities and rights of each party. Standard terms are included in most contracts. However, contracts may also contain special terms and conditions specific to the deal between the parties.
The terms and conditions included in a contract are crucial. They can limit a party’s ability to terminate the contract or take specific actions. Term and conditions may also dictate what actions would automatically terminate the contract or result in other legal remedies.
In other words, terms and conditions address situations and scenarios not part of the contract’s main agreement. For example, the terms and conditions of a contract may dictate how disputes are resolved or what state has jurisdiction to hear disputes.
The type of contract would determine the terms and conditions that the parties include in the contract. For example, the employer may want to insist upon clauses that address non-compete agreements and non-disclosure agreements in an employment contract. An employment contract may also include who has the rights to ideas and inventions.
On the other hand, a contract for products or services would include terms and conditions related to price, delivery, deadlines, materials, use, warranties, and policies for returns or refunds. The contract may contain terms and conditions related to lability, defective services or products, and other terms specific to the transaction.
Are Terms and Conditions Important for Online Businesses?
Yes, terms and conditions are just as important for online small businesses as they are for other companies. Visitors to the website need to be aware of the terms of use and the restrictions for using the website. For example, visitors or users are prohibited from copying information on the website for use elsewhere.
When a customer purchases products or services or utilizes the features on the website, they often click a button that states they agree to the terms and conditions posted on the website. For courts to uphold these “clickwrap” agreements, the terms and conditions must be clear, available for viewing and provide reasonable notice to users.
Do I Need a Maryland Contracts Attorney to Help Me with Terms and Conditions?
Yes, you should consult with a Maryland contracts attorney when drafting terms and conditions for contracts and websites. First, you want to ensure that the terms and conditions protect your company and your best interests. Second, you want to ensure that the terms and conditions are valid and legal.
Contracts and agreements can be enforced in court. Make sure your terms and conditions protect your investment in your small business. Steve Thienel can help. Contact him today.
