A legal agreement, a.k.a. contract, requires three things:
1. An Offer.
2. Acceptance of the offer.
3. Consideration.
It works like this:
You make an offer (a promise) to provide a service.
Someone accepts your offer and promises to pay you for your services.
The parties to the agreement attach an agreed upon value to each other’s promises. This promised value exchange is the consideration.
Offer + Acceptance + Consideration = Contract
Once all three elements of a contract are met, the parties are legally bound.
And to the extent that the parties fail to spell out any of the terms of the agreement, the relationship could get ugly if one side doesn’t make good on the promise or expects more than what the other side understood the promise to be. Enforcing the agreement gets tricky when there’s no written agreement to refer to. Generally, a Court will not be willing to fill in the missing terms; It won’t be willing to do what the parties to the contract failed to do in the first place.
This is why you need a client services agreement, a.k.a., a contract.
Contracts help define the expectations of the parties and prevent misunderstandings.
A written agreement for your services should include the following, at the very least:
- The exact services you are promising to perform;
- How much it will cost for those services;
- When such fees are to be paid;
- How long the agreement will last;
- Whether there are any circumstances that will allow you or your client to terminate the agreement;
- What happens when a client fails to pay or fails to show up;
- Your cancellation policy;
- Your refund policy.
The more terms you include, the easier it will be to settle any issue that may arise.
The clearer the terms, the less chance for issues.
Don’t sit back and hope for the best. You’re a businesswoman. Cover your assets.