Entrepreneurs and business owners often shy away from contracts and agreements especially when doing business with friends or acquaintances. While it is not a guarantee for service delivery, it helps to clarify terms and provides a common understanding for both parties collaborating.
A good contract:
1. Is written
2. Contains all the important details of the transaction such as delivery dates, prices and payment terms
3. Clearly demarcates responsibilities for each party
4. Has the scope of the task to be executed as well as exclusions
5. Includes situations that could contravene the agreement
6. Has other special considerations
While having a contract is good practice, it is far better to do business with people who have integrity and that you can trust.
Please share your experiences in the comments below.
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