What should be the contents of a contract? The list of what is required to be included in a contract is quite long. However, a short, simple contract may work effectively well for the needs of your job. Therefore, this post presents a summary of the basics that should be reflected in the contents of every contract.
The Parties
This section clearly marks out the names, signatures and other business information of the parties to the contract. That is the contractor and the hirer. In essence, it is vital for all written contracts to include some basic information about the parties to the contract. Such as names and business addresses, a statement about your status as an independent contractor, the signatures of both parties and the signatures of any witnesses to the contract.
Description of services or results
Defines all the necessary details about the work to be done or the result that is expected to be achieved at the end of the contract. Description of services or results is a must have in every contract because, if a contract contains a complete comprehensive description of the tasks, you will be able to make reference to it and check what must be done. And when, where and how it must be done in order to avoid a breach of contract.
Payments
Every contract state clearly the method and timing of payments as well as the hand manner in which the payment will be made. Basically, the method of payments can either be fixed fees or hourly rates, however, whichever method that is included in the contract, should as well as define how the fees will be calculated. The timing of payment under fixed-fee contracts can be set through any of these ways: full payment when the work is completed or Progress payments. That is payments by results or installments. More so, the contract should state the manner of payment; whether an invoice would be required for payment to be made or not, the agreed timing for payment, for an instance, within 21 or 30 days of receipt of a correct invoice or what? And how payment is to be made. Whether, through direct deposit into your bank account or cash.
Procedure for settling disputes
This section deals with how the parties to the contract will handle a dispute if any occurs. This is also crucial because business dealings do not always run without frictions. Hence, it is always a wise practice for contracts to include a procedure for settling any disputes that may arise in the course of the contract.
Contract Termination
This clarifies the way and manner each party can bring the contract to an end and the consequences associated with the termination in certain situations.
