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The Best Place for Free, Customized Contracts

| March 5, 2012 | Comments (6)

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Photo by Steve Snodgrass.

As a boot-strapping entrepreneur, you’re constantly looking for ways to reduce your costs. One of those methods is using contract templates rather than an attorney. Although I always recommend hiring an attorney, if you feel that you’re not in a position to do so, there’s a great resource out there for free, customized contracts for your business.

The resource is you.

Go ahead and draft your own contracts. This is the only way to get a customized contract for your business without working with an attorney. Start with a blank page, not a form template you found online. Chances are, that template has terms you don’t need, or even has terms that contradict the terms of your actual deal.

First, identify the parties. Write down the people who are involved and the businesses that they represent. Determine whether or not your business is with the person, or the organization.

Second, figure out what the details of the deal. Are you exchanging money for services or money for goods? Describe how much money and when it’s due. Also, describe the services and goods you expect to receive.

Third, put a timeline into the deal. When is everything going to happen and how long will it take to complete. Is there a grace period for any portion of the work? If this is a large project that will have milestones, put those in, too.

Fourth, how are you going to get started. Is any payment due up front? If you’re hiring a graphic designer, what information do they need from you to create an accurate logo?

Finally, what happens if something goes wrong. This must be a detailed plan including whether you’ll seek mediation or arbitration, which laws will apply, which court will decide the issue, and whether either side will be liable for attorneys fees.

Focus on your concerns of the deal. Put those on paper, and make sure you detail your concerns. The pros, the cons, everything. Your contact should reflect those concerns, so that you know what will happen if your concern actually materializes.

There are definitely contracts that shouldn’t be done on your own. Any sort of agreement dealing with employees, independent contracts, or interns; non-disclosure and non-compete agreements; and anything dealing with intellectual property are definitely contracts that you should hire a lawyer to review.

If you’re bootstrapping, these tips can help you draft a custom contract. If you’re not bootstrapping, I recommend you take time to find an attorney you like and trust to guide you through the process. A long-term relationship with an attorney is an investment in protecting your business against risk and liability.

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Category: Legal, Startups

About Andrew Legrand: Andrew Legrand is dedicated to helping small businesses, entrepreneurs, and startups in the New Orleans metro area through the online law office of Andrew Legrand Law, LLC. As a Metairie native, Andrew loves to see locally owned businesses thrive, create jobs, and keep the monotony of corporate America franchises at bay. View author profile.

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  • https://plus.google.com/114255628586137435507/about Matt Miller

    I agree that thinking about the terms of a contract and negotiating is much better than simply signing whatever the other party asks you to sign.

    I think that part of the value of a lawyer is in all the details that just aren’t on a non-lawyer’s radar.  Lawyers see deals go bad in all kinds of ways, and can help mitigate some of the problems.   Also, for companies just getting started, it is really important to get the operating agreement done right, because you could be stuck with it, and because it sets out how the company is controlled.

    Also, I am a Registered Patent Attorney, and my practice includes trademark law.  From that perspective, picking a brand name is really important.  Most business owners don’t want to change their brand name, and they really don’t want to change it after using it for a few years and getting some recognition in the marketplace.  So, getting some advice about naming a company, early on in the process, is something that I think is important.

    • http://twitter.com/LawByLegrand Andrew Legrand

      Matt, thanks for the comment. You actually touched on the topic that I plan on posting about next week.

  • Scott Wolfe Jr

    Andrew, this is a great post. I’m an attorney (as you know), but I’ve also worked with attorneys who were doing work for me in another company or doing work for my father’s businesses. It’s surprising how long it can take an attorney to understand your business and the details of your business. Sometimes, it can literally take years.

    There is some real merit in saying that a business owner is the best person to write their own contract. However, there are some little tricks that lawyers know and can help with.

    The best case is to really be involved with your attorney in drafting a contract. If you do hire counsel, don’t give it to the attorney and forget about it. Be very involved with the process, go through the attorney’s work and talk about it with your attorney and co-workers. Getting a contract right is very important, and while many attorneys might argue with you about whether they are necessary at all, one thing is indisputable: the business owner’s input and perspective is necessary.

    • http://www.nolasmallbizlaw.com/ Andrew Legrand

      Thanks for the input, Scott. That last sentence is key. Often times, I receive calls from potential clients asking me to provide them with a contract. I’m happy to help them put their ideas on paper, but more often than not I need to convince the client that their input is just as important as mine.

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