Advice When Using a Simple Business Contract for Your Business

There are many times in business when a business’s owner needs a business contract. Having a contract that is clear and understandable will protect your business and the contractor you are hiring. This guide will help you understand how to use a simple business contract to keep things clear and concise.

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Below we’ll cover:

  • What to Cover in a Business Contract
  • Clauses to Include in a Simple Business Contract
  • Simple Business Contract Best Practices
  • Collecting Signatures
  • Links to Related Resources

What to Cover in a Business Contract

In a simple business contract template, you will need these sections:

  • Scope of Services – This section outlines what services the contractor will provide for the business, and it should be as detailed as possible.
  • Naming the Parties – The opening of the contract will name the parties involved and provide their addresses.
  • Compensation – This section outlines what compensation is given for the successful completion of the project or contract.
  • Governing Law – This section names the state that oversees the contract. If the parties are in different states, this is vital, because states have different regulations regarding contracts.
  • Amendment and Termination Sections – These sections state how the agreement can be amended and when and how the contract is terminated.
  • Signatures – To be legally binding, the contract must have signatures. ConsiderNitro Sign to easily collect signatures in a secure online environment.

Clauses to Include in a Simple Business Contract

When writing a simple business contract, there are some clauses that need to be included for your protection. Some to consider include these:

  • Warranty Clause – The warranty clause indicates the promise that the named contractor will perform the work in the agreement in the right manner and meet the standards set forth in the community where the work is performed.
  • Disrupt Resolution Clause – If disputes arise, this clause tells the parties how to go about resolving them through mediation or arbitration, while also naming the laws in the state that apply to the dispute.
  • No Assignment Clause – This clause prohibits assigning the terms of the contract to another party, except for heirs and representatives, without written permission.
  • Severability Clause – This clause states that if some portion of the contract is found illegal or unenforceable, the rest of the clause remains in effect.
  • Notice Clause – With this clause, the contract will stipulate that the parties must send any changes or requests regarding the contract in writing. A simple business contract template should have a place to put the address.

Simple Business Contract Template Best Practices

As you fill in a simple business contract template, make sure all of the terms and clauses are clear. Using a pre-made contract can help with this, but always fill in the information necessary to make it understandable and clear. In addition, make sure that the services rendered and covered by the contract are clearly outlined.

Before a contract is legally binding, it must be signed. Consider getting the contract signed and witnessed by a notary to ensure it is fully, legally binding. Always get the contact information of the people signing the contract. UseNitro Sign to make collecting signatures a breeze.

Links to Related Resources

For more information about simple business contracts, visit:

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