A clear business contract helps the parties understand their obligations, reduces misunderstandings during performance and sets out how problems will be handled. Before signing, review the terms, supporting documents and the signatory’s authority.
Check the parties and signing authority
Names, addresses, registration numbers and legal status should match official records. For a company, check its registration certificate and the signing conditions for directors or authorised representatives.
- Correct names and registration numbers
- Signatories have authority and, where needed, a power of attorney
- Valid contact details and addresses for serving notices
Define the work and acceptance criteria
A statement such as ‘services as agreed’ may be too broad. Specify deliverables, deadlines, responsibilities, acceptance procedures and how corrections will be made. Attach a detailed scope of work where appropriate.
Payment, liability and dispute arrangements
Specify the amount, taxes, due dates, billing documents and consequences of late payment. Consider whether limits on liability and contractual penalties are appropriate to the value and risks of the work.
Termination and disputes The agreement should identify grounds for termination, time to remedy a breach, consequences of termination and the return of information or property. Choose the governing law, competent court, or negotiation and mediation arrangements suitable for the parties.
NoteThis is general information. Drafting or reviewing a contract requires consideration of the facts and risks of the individual business.