Since I’ve been talking about how to protect your business in the last few blogs, it’s time to mention contracts – the most essential protective measures you can put in place in your business. Specifically, I want to talk about what makes a contract enforceable. Every day, you enter into some type of contract. Whether you’re making an online purchase or buying a hamburger, you are essentially agreeing to a contract. Contracts exist everywhere! And when implemented properly, contracts can protect your secrets, your reputation, your property, your equipment, and more.
Before I talk about the types of contracts that protect your business, let’s talk about the elements of good contracts. Contracts don’t just exist when you make a purchase or sell an item. They exist to expedite, enforce, and ameliorate any transaction between people. Each of these elements are what makes a contract enforceable.
Now that you know how contracts work, let me give you a list of 15 common contracts that exist within the business world.
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Each of the contracts I listed above can create safety barriers around business owners. If you have all of your agreements documented, you can protect yourself from litigation or during litigation. Furthermore, you can prevent customers, lenders, vendors, suppliers, and employees from taking advantage of you. The more protections you have around your business, the more valuable your business becomes to potential buyers and investors. Essentially, by creating and enforcing contracts, you can build a best-in-class risk management department.