Do I Need a Contract?
Posted on March 27, 2008
Filed Under Laws and Contracts
Angel asks:
“I have the opportunity to create gift baskets for a local brownie company. They supply the brownies and I will create the basket for them to give to the customer.
Should there be a contract between the brownie company and my basket business?”
Congratulations on obtaining this account. Many designers do not pursue a contract when working as an outsource supplier because they believe the informal connection is beneficial.
However, many more understand the complexities of this collaboration and work out the details in writing before starting.
I learned long ago that you, the company hired to complete a project, are the one responsible for creating the contract. It’s in your best interest.
The contract will include:
- the two parties’ names
- the contract terms (what will be provided)
- the contract length (how long you will work with them)
- the payment and when it’s due (charging for the entire project versus an hourly rate works in your favor)
- where the work will be completed (their facility or yours),
- who’s responsible or held harmless in case of fire or theft, and any intricacies associated with the terms
I’m not an attorney, so consider what I’ve shared as advice only.
I encourage you to seek guidance from a small business attorney to create this contract. If you think he’ll be expensive (it’s more affordable than you imagine), think about how much this project will cost you if something goes wrong and there’s a dispute that lands you into court.
I interviewed small business attorney, Robin Gronsky, on Legal Tips to Keep your Company Out of Court, which covers this and other topics. It’s a worthwhile investment to understand legal basics.
[tags]gift baskets business, finding a small business attorney, gift basket laws[/tags]
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