Do you sign your ๐ฅ๐๐ ๐๐ฅ ๐๐จ๐ง๐ญ๐ซ๐๐๐ญ๐ฌ without reading them first? ๐คโฃ
Do you work with clients or biz partners ๐ฐ๐ข๐ญ๐ก๐จ๐ฎ๐ญ a contract in place? ๐โฃ
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Ok, donโt panic... Letโs ๐ฅ๐๐ฐ๐ฒ๐๐ซ ๐ฒ๐จ๐ฎ ๐ฎ๐ฉ a little bit! If you are a small business owner and you have (1) personal assets (car, house, bank accounts) or (2) business assets (inventory, IP, bank accounts), then itโs time to put on your big girl pants and start ๐ซ๐๐๐๐ข๐ง๐ your contracts. Yes, all of them. Yes, every page. โฃ Itโs also time to start ๐ข๐ฌ๐ฌ๐ฎ๐-๐ฌ๐ฉ๐จ๐ญ๐ญ๐ข๐ง๐ in your business to understand where you may need contracts that arenโt already in place. โฃThis blog post is about service agreements, but if you want to learn more about common legal provisions across many types of business contracts read our last post on that HERE.
Service Contracts (From Providerโs Perspective)
In general, a service agreement defines and clarifies the relationship between 2 or more โPartiesโ, typically a service provider and a customer. The โProviderโ may be a consultant, a contractor, a vendor, or any other entity that offers services. See below for some of the common provisions you will encounter (or may want to include) in service agreements for your small business:
- Provider Obligations (e.g. specific services to be provided (and whatโs not included); adherence to industry standards; diligence, timeline, deadlines)
- Customer Obligations (e.g. payment terms- pricing, when due, how paid; if applicable, any purchase minimums; what happens if late payment; provision of materials or instructions; reimbursement for expenses (meals, travel, etc.)
- Confidentiality Protection
- Intellectual Property Ownership
- Diligence, Timelines (Including Deadlines)
- Term Length & Early Termination/ Cancelation Process
- Termination: How & Then what?
- Dispute Resolution Process (e.g. what happens if somebody thinks the other breached?)
- Distribution of Risk & Liability
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Feeling confused about contracts? Send specific questions to hello@startupheartup.com, and business lawyer Kae Gruner can provide information and examples via Instagram LIVE, blog posts, or otherwise!
P.S. Are you on Instagram? If so, join @startupheartup LIVE on Saturdayโs at 10 am for our weekly series called #๐๐จ๐๐๐๐๐๐ง๐๐๐จ๐ง๐ญ๐ซ๐๐๐ญ๐ฌ. โฃLawyer @Kae_Gruner has reviewed, written, and/or negotiated over 1600 contracts in her career! Sit back with a cozy cup of coffee or tea, grab a pen and notebook, and learn how to ๐ฉ๐ซ๐จ๐ญ๐๐๐ญ ๐ฒ๐จ๐ฎ๐ซ ๐๐ฌ๐ฌ(๐๐ญ๐ฌ) with Kae! โฃ Also coming soon: new episode on the Start Up Heart Up podcast all about contracts!! Subscribe so you donโt miss it โจโจโจ.
KAE GRUNER, FOUNDER, START UP HEART UP
Patent lawyer, deal-maker, & lover of ideas, Kae founded Start Up Heart Up with the goal to empower everyday entrepreneurs. Whether building a new business or starting a side hustle, Kaeโs expertise in intellectual property and business law can help you bring any dream business from idea to launch