The deal isn’t sealed until it’s in writing.
As experienced business attorneys in Washington State, we understand that owning a business is hard work. As much as you may want to, you can’t do it all alone—at least not successfully. Luckily, you can delegate your legal needs to the business experts at By Design Law .
As an entrepreneur, you know that big dreams don’t happen unless someone makes them happen. You’re used to doing the heavy lifting in order to actualize your goals in the real world, and all your hard work has paid off: You’re ready to open a business.
If you’re like most entrepreneurs, you’re probably used to taking calculated risks, and why not? You had an idea for a business and now it’s up and running. However, it’s important to recognize when it’s time to involve others, and, perhaps more importantly, when it’s time to exercise prudence.
Legal work, especially as it pertains to contracts, isn’t one of those things you can just barrel your way through. When you were first getting started, a handshake and a verbal agreement might have been enough assurance, but it’s not anymore. To continue a successful trajectory, you need to use fool-proof, professionally drawn legal documents.
Fortunately, you don’t have to search very far to secure top-notch contracts. The business attorneys at By Design Law are here to facilitate your every legal need. We’ve helped numerous clients in the Seattle area achieve sustained growth, and our experience has taught us that legal contracts are the foundation of a healthy business.
Not sure where to start? We’ve got you covered. This article will explore the nature of business contracts, the most essential contracts for Washington business owners and more.
Need legal help now? The longer you delay, the more likely you are to run into contract disputes, compliance issues, tax complications and more. Schedule a free case consultation online to get started.
What’s in a Contract?
A contract isn’t just an arbitrary document that represents an agreement. It’s a reassurance that if a broken deal causes your business to suffer, you have legal recourse. Here are some of the many benefits of putting your most important agreements into contract:
- Understanding between parties . Contracts create a clear and written understanding of each party’s respective rights, responsibilities and obligations. Iterating these things early on can help circumvent disputes as well as provide a document to refer to when in doubt.
- Legal protection . A contract is legally binding and enforceable, meaning that if one party violates it, the other party has the right to seek legal remedies.
- Risk mitigation . Contracts force parties to evaluate issues upfront and plan for worst-case scenarios. In doing so, they reduce uncertainty in potentially tense situations involving termination, dispute resolution and liability issues.
- Enforceability . Regardless of how a dispute is resolved, a well-drafted contract is legally enforceable and typically upheld by the courts.
- Documentation . Contracts serve as historical records for businesses and can be useful tools for reference, in audits and tax issues and with financial reporting.
- Protection of intellectual property . By specifying how IP is allowed to be used, licensed and shared, a contract can protect a business’s valuable assets from unlawful or unauthorized usage.
- Exit strategies . Contracts provide guidance for how to handle tough situations like exit strategies and termination clauses for partnerships, joint ventures and other business arrangements.
- Establishing trust . When you enter into a contract with another party, you demonstrate your commitment to the terms, conditions and responsibilities within it. This can help professional relationships get started on the right foot and provide the foundation for mutually beneficial growth.
These are just a few of the ways in which establishing top-tier contracts can be beneficial for your business and for your professional relationships. However, it’s also important to understand which types of contracts are most beneficial to your business and why.
The Most Important Contracts for Washington Business Owners
Depending on the sector in which you operate, some contracts are much more essential than others. However, certain contracts are critical for every type of Washington business owner, and those are the ones we’ll detail below.
- Employment contracts . If you have employees of any kind, you need employment contracts, regardless of your industry or yearly earnings. These contracts should include key elements such as job responsibilities, compensation, confidentiality agreements, benefits and termination procedures. If you employ independent contractors, you should have separate employment contracts for them, as they are classified differently under Washington law.
- Supplier and vendor contracts . Suppliers and vendors are key players in your continued growth. With them, you can establish mutually beneficial relationships that last for years, but you need to have sturdy contracts in place first. Contracts should outline payment terms, quality expectations, dispute resolution protocols, delivery schedules and anything else that could potentially affect your supply chain.
- Customer contracts . Perhaps the most important contract you will create is your customer contract. More than any other relationship, your customer relationship is the one that will make or break your business. As such, they should specify the terms of any possible contingency, but especially terms and conditions, service agreements and the rights and responsibilities of both parties.
- Commercial lease agreements . If you rent a storefront or office space, you’ll need to have professionally drafted commercial lease agreements. These contracts should align with your specific goals and budget and address factors such as rent escalations and lease duration.
Keep in mind that these are the most basic and essential contracts. As your business grows and evolves, you’ll need to develop new and more in-depth agreements.
Why Not Just Use an Online Contract Generator?
These days, business owners can simply Google contract generators, pay a fee and download a contract-passing document. But make no mistake: These are not high-quality contracts and offer little legal protection as compared to professionally drafted agreements.
If you’re going to go to the trouble of creating contracts, you might as well do it the right way. Anything less is a waste of time and money. The good news is that hiring an experienced business attorney isn’t as costly as you might think, and in most cases, the benefits of a legal partnership are worth the fees many times over.
By Design Law: Trusted Business Attorneys in Seattle, WA
At By Design Law , we take pride in providing essential legal support for business owners in the Greater Seattle area and beyond. Whether you just need help drafting top-tier legal documents or you’re looking for full-spectrum legal services, our firm is here for you.
Ready to get started? Contact us online to schedule a complimentary consultation today.