Protecting your business starts with solid contracts. You work hard to network and build successful business relationships. Your agreements should help you safeguard those partnerships. That is why what you include in your contract matters. Below are three important clauses you should consider including in your business contracts.
Breach of contract clauses
A breach of contract clause defines what constitutes a violation of your agreement. More importantly, it outlines the consequences of such violations.
Think of this section as your playbook for handling problems. It’s advisable to include specific remedies like monetary damages, steps for resolution and timeframes for cure periods. This clarity helps both parties understand their obligations and potential consequences for non-performance.
Force majeure clauses
The force majeure clause shields your business from liability when unexpected and unavoidable circumstances prevent you from completing your end of the deal. Examples of these events include:
- Natural disasters and extreme weather events
- Government actions or regulations
- Labor disputes or strikes
- Public health emergencies
- Supply chain disruptions
A well-drafted force majeure clause outlines how both parties should proceed when faced with events beyond their control. Think of the risks your business or industry faces—these are the events you should consider when writing a force majeure clause.
Termination clauses
Your termination clause outlines how and when parties can end the agreement. Ideally, it should include:
- Specific grounds for termination
- Required notice periods
- Post-termination obligations
Additionally, your termination clause can help address what happens to ongoing projects or any remaining payments. These would help ensure a smooth and amicable end to your agreement.
Making sure your contracts protect you
These three clauses help lay a strong foundation for your business relationships. They protect you when things go smoothly and when they don’t. While template agreements might seem convenient, they often miss crucial details specific to your situation and needs.
Seeking assistance from a skilled business attorney can help you draft contracts that truly protect your interests. A well-drafted contract will serve as your safety net and may help prevent costly disputes in the future.
