by Team Tradify, December 12, 2024
2. When do you need a contract template?
When running a business, time is money. Creating (or downloading) an editable contract template reduces time wasted duplicating work every time you need to generate a contract. It also provides a clear, consistent structure that makes creating professional contracts faster and easier. With a solid template, you can be confident that all the essential details are covered, reducing the chances of missing something important. It also helps set clear expectations upfront, minimising confusion or misunderstandings with clients.
A contract template also makes sure your contracts align with your business standards and policies. It allows your team to focus on fine-tuning the specifics for each client, rather than reinventing the wheel every time.
Important note: For more complex agreements, it’s always a good idea to have a lawyer review the contract to ensure it fully protects your business. While templates are great, professional legal advice is invaluable for trickier situations.
3. What to include in a contract template
To create a contract template follow the following instructions:
Titles
- Start the document with the title "Contract."
- Introduce the parties involved, referred to as the "Service Provider" and "Client."
- Include placeholders for the names, addresses, and the agreement date.
- Define terms like "Party" (individual entity) and "Parties" (collectively).
Consideration clause
- Add a clause stating the consideration for the contract (e.g., goods, services, or valuables) and a brief description of the agreement’s intent.
- Example: "The Service Provider agrees to perform the services described below in exchange for the compensation outlined herein."
Terms of Agreement
- Provide options to specify the agreement’s start and end dates:
- A specific termination date.
- Termination upon completion of specified services.
- Any additional provisions.
- Clarify that the agreement can include provisions for renewal or extension.
- Example: "This agreement may be extended upon mutual written consent of both parties."
- Example: "This agreement may be extended upon mutual written consent of both parties."
Services
- Describe the scope of services the Service Provider will offer.
- Emphasise compliance with laws, regulations, and the Client’s policies.
Payment details
- Include subsections for:
- Compensation Methods: Per hour, per job, or other payment structures.
- Retainer Clause: State whether an advance payment is required and if it is refundable or non-refundable.
- Use placeholders for amounts and payment terms.
- Specify the consequences of late or non-payment by either party.
- Example: "Failure to remit payment within [X] days may result in suspension of services or additional fees."
Payment method
- Specify how and when payments will be made (e.g., upon completion, scheduled payments, or invoicing).
- Add examples of acceptable payment methods (e.g., bank transfer, credit card, or cheque).
Termination clause
- Include conditions for early termination due to a breach, with a provision for written notice.
- Expand the written notice provision to specify the timeframe required for notice.
- Example: "Termination requires written notice of no less than [X] days."
Confidentiality
- Add a clause requiring the Service Provider to maintain the confidentiality of the Client's sensitive information, with exceptions for legal requirements or necessary disclosures.
- Include a non-disclosure period (e.g., confidentiality obligations remain for [X] years after the agreement ends).
Tax responsibility
- Clarify that the Service Provider is responsible for any applicable taxes or charges related to their compensation.
Independent contractor clause
- State that the Service Provider is an independent contractor and not an employee.
No waiver clause
- Specify that any waiver of terms must be in writing and signed by the waiving party.
Governing law
- Provide a section to specify the governing law applicable to the agreement.
Signatures and dates
- Include spaces for the printed names, signatures, and dates of both the Service Provider and Client.
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