What's more important than the money in any contract you sig
Do you know that single most important part of any contract? Many business
owners are kicking themselves and their growth is hampered because they did
not pay attention to it---and what it could do to them.
Business owners are understandably in a rush to grow their business. You
have to be fast to stay ahead. You must always look to the next deal to grow
your business. Software licensing, advertising contracts, link exchange
agreements, service contracts, consulting arrangements, they are what you do.
But in your haste to grow and make the deal, do not run past this one
detail. So often your concern on any agreement boils down to two questions,
"What do I have to do and what do I get?" Ask yourself one more question.
It applies to both the contract other people have you sign and the ones you
have your customers sign. It doesn't matter if it is a one-page agreement or
a forty-page contract in ten-point print. Ask yourself this one question.
What is the way out?
I know. It is the last thing everyone thinks about. Everyone is too focused
on making the deal and not how to get out of it.
We have all heard of other businesses that found themselves stuck in a
contract they cannot get out of. A hosting service has them locked into a
multi year contract -forever in internet terms, or they are bound to supply a
good or service at a ridiculously low price. A deal made when they needed
the money too much to turn down the customer, and now they regret it.
Don't turn down business. Often if you get a lawyer involved they do more to
kill the deal than help it. I suggest creating an escape hatch for an
emergency.
There is another advantage in asking that question. Not only are you in a
hurry to make the deal, but so is the other guy. In fact if you ask
yourself, "How do I get out of this if things turn sour?" and you do not like
the answer you are reading, turn it to your advantage. Make a subtle
suggestion to change the wording. The other guy will usually make the change
if it does not look too bad because he is also is in a rush to make the deal.
In another article I will write about guerilla tactics to modify the terms of
those "Sorry I can't change it" preprinted form contracts people make you
sign.
About the Author
Douglas Smith is a Boston attorney. Practicing for over seven years, he was
formerly a corporate counsel and is currently retained by a governmental
agency to monitor the compliance of a billion-dollar restitution program
being conducted by a major U.S. corporation. Contact him for a few
complimentary suggestions. http://lawfirm.webjump.com