What makes a strong business contract? Our advice

Today it is more important than ever for businesses to have in place clear and effective contract arrangements.  

Businesses which are aware of the implications of contract law can use it to enhance and also protect their own position. 

In this article, Paul Longland, who recently joined Frettens after 30 years as partner at another long-established local corporate law firm, outlines his tips for effective contracting.

When would you use a contract?

Contracts in business should be used to outline both parties’ obligations and protect your business and its legal position.

It is surprising though how many businesses are reliant on a key product, client ,customer or supplier but have no written contractual arrangements in place with the person or company involved.

At least a contract with a notice period will give a grace period if the worst happens.

What are incorporated terms?

Incorporated terms are any terms which have been included in a contract. Terms only become legally binding once they have been incorporated into the contract.

How do you incorporate terms and conditions?

Terms become incorporated by including them within the contract or referring to them in the contract.
You must make the inclusion of such terms clear to the other party by taking ‘reasonable steps’.

  • It’s beneficial to have a clear statement in writing of what has been agreed
  • All parties agreeing and signing before work begins is preferable
  • Make sure terms and conditions are supplied to customers before any order is placed
  • On a website, make sure that any terms posted are clearly indicated and acknowledged when the order is placed

What should business contracts include?

Any contract should:

  • Record the commercial deal which has been reached
  • Include a clear and unambiguous description of who does what and when.
  • Include a clear statement of what:
    • the contract provides for,
    • timescales apply,
    • the guarantees and quality standards will be,
    • and how goods or services will be paid for.

What business protection terms should be included in contracts?

Click here to read the full article.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.