Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header
Share for a Cause









Contracts, Contracts, Contracts... Read 'Em Well!

Written by: Marijo McCarthy

Article Overview: Contracts are important documents... for many entrepreneurs, they are the life blood of the business... written agreements which specify, sometimes in great detail, the terms and conditions for the sale of a product or service.

Free Download - What's An Opinion, Anyway? By Marijo McCarthy
Name: Email:

Contracts, Contracts, Contracts... Read 'Em Well!

Contracts are important documents... for many entrepreneurs, they are the life blood of the business... written agreements which specify, sometimes in great detail, the terms and conditions for the sale of a product or service.

Not a week goes by without a client asking for a contract review. So many of my clients show the foresight and value judgment to ask for advice in advance and that's great... it's where I can really bring care and concern to the transaction, at the time when the other party wants to do business with my client and is willing to reasonably negotiate in order to seal the deal. So far, so good!

Having passed the first milestone... that is, having given or received a written agreement for your product or service, you naturally proceed to perform or await performance by the other party. All seems to be going well... both parties are satisfied, proceeding with the work, billing and paying for services rendered on a monthly basis and then, all of a sudden, a hiccup occurs. It's not unusual...it's not bad... it's business!

So, now what? Well, if you are like most entrepreneurs, you sort out the issue, agree to the solution and move on. But, wait a minute... didn't you forget something?

In the blur that becomes our daily business lives, too often we forget that most important, last step... we forgot to document both parties' agreement to that hiccup solution. Both parties were satisfied at the time, but will surely have vague memories of the resolution months down the road, when the contract is complete and it comes time for final payment... it's not deliberate or scheming on the side of either party, it's just natural!

What's the final step in resolving that hiccup? Document it, of course! And, document it according to the terms of the written contract which you signed months ago and haven't looked at since.

There are two standard provisions in every contract (or there should be if you have reviewed and negotiated the contract upfront). One provision is what we call "modifications" and the other is "notice." The first tells you how the contract can be modified and the second tells you what process to use to do so.

The first provision tells you that modifications (undoubtedly the resolution of that first hiccup involved a solution which strayed from the terms of the original contract, which is okay, since both parties agreed) must be in writing and signed by both parties.

The second provision specifies, in detail, what form that writing must take... usually fax, certified mail, overnight mail... and when the notice is actually effective... immediately upon receipt via fax, upon signature or refusal of certified... you get the picture. Of course, so much of what we document nowadays is done electronically that we may be tempted to do a short-cut and simply document the resolution via e-mail... which, for the uninitiated, unless electronic mail is included in the notice provisions of your contract, is a technical violation of the terms agreed to. However, an exchange of e-mails can at the very least show that both parties agreed to the contract short-cut and will serve you in good stead down the road.

So, what's my advice?

After both parties have agreed to the change and before you move on to implement it, revisit the contract.

Follow the contract provisions for modification and notice of such modification.

Just as you documented the original agreement in writing, be sure you document any change to the agreement in writing, in at least some format, even if informally.

Remember, if it's true that "a contract is only as good as the paper it's written on," it's also true for the modifications! Make sure to give these the same attention you gave to the original document.

Related Articles
  Bid Training – Why Do You Need It?
  Contract Management Services – For The Supplier Or The Purchaser.
  Correctly Written Tenders Are The Key to Building Your Business
  Plain English Guide To Contracts
  The Benefits of Consumer Contract Financing Part 2

Home > Legal > Marijo McCarthy > Contracts Contracts Contracts Read Em Well
Article Tags: entrepreneurs, modifications, notice, service contracts

About the Author: Marijo McCarthy
RSS for Marijo's articles - Visit Marijo's website

Marijo McCarthy is principal of Widett and McCarthy, a Boston-area law firm that helps small business owners grow their businesses with pragmatic legal advice, mentoring and a solid team of professional advisors.

Click here to visit Marijo's website
Dashed Line

More from Marijo McCarthy
Time is of the Essence
There Are Deals To Be Done in 2009
Are You in Compliance
Are You Ready for Data Security Compliance Language
Contract War Stories from the Trenches


Related Forum Posts
Re: Looking for a Blog topic? Re: Looking for a Blog topic? - Great advice GT. This and every other quality forum, every book you read, every article or website can be a source for your own writing. Find a topic, blog about it and LINK BACK to the source (or acknowledge the author if it is a book - or add an Amazon link). Every time you link out a good site you are giving your readers value. Don't worry about losing traffic or getting/not getting back-links. Just DO IT! It will make your blog much more informative and therefore more valuable and more attractive. The best blogs always have tons of links heading out to whatever good stuff the blogger finds. Read, learn, write, link. Read, learn... etc.
Re: What I'm reading this weekend - Jan 21, 2011 Re: What I'm reading this weekend - Jan 21, 2011 - I'm already working my way down the list. Read 3 of them so far. Thanks as always!
Re: Don’t worry, Enrich your life and Be happy Re: Don’t worry, Enrich your life and Be happy - [quote="lisa":1rc4ik2q]Start saying positive things especially about yourself. How you communicate to yourself affects your thinking and your emotions, as well as your self-esteem.Change your mental pictures. What and how you see yourself and your surroundings make a difference to your thinking.Read more. Read about how those people who fought fear with courage and succeeded in life. Through reading, you will gain new knowledge and understanding and it will help you clear whatever is blocking your thinking and create more ideas. [/quote:1rc4ik2q] Lisa is right about this. Positive self talk can really make a difference. When you catch yourself saying something negative (whether verbally or just thinking it), turn it around and make it into the opposite. You have to remember to do this continually until it's just habit that the positive thought/saying becomes the first thing you hear instead of the second. It becomes automatic.
Re: New Google Tool Makes Websites Twice as Fast Re: New Google Tool Makes Websites Twice as Fast - I love that you guys are so action oriented! David installing the Read Later button, Mal writing the HostGator ticket - you are all awesome!
Re: What works for you? Re: What works for you? - Read Mal's reply very closely. He is not talking about pressuring oneself to achieve goals. Have goal and achieve it with passion. Robert.


Recommended Article for You close

  Bid Training – Why Do You Need It?

Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article


Bottom Footer
Share for a Cause












Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Are You Remarkable Enough?

LEARNING TO HAVE FUN – EVERYDAY!

TOP Level Selling

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.