Forums: Discussions for entrepreneurs and small business.

Hey everyone,
Glad I finally have a question to post on the forum! 

I kind of fell into a business as of late.  I`ve always been good at design and web pages and through Craigslist, bartered with someone to create a site.  Word of mouth spread, and now I have 5 customers on the line and am starting to host web pages now.  My problem is, should I have a contract with these people as far as terms of payment/money-down, etc?  What should it look like?  Does anyone else have any experience with this?  Thanks ahead of time!  This is an incredible community, thanks for your help!

Chris74,

It`s just good business practice to have some type of contract in place with your clients. Go to FormNet which is located on www.entrepreneur.com. It has lots of free forms to download. This will give you a great place to start.

 

 

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Shaun M. Smoot, Principal, Totus Company Atlanta Technology Firm

Before it got hijacked, the "You paid for it, do you own it" thread was really developing some useful information about what sort of contracts work, why to have them, and what you can do with them. Unfortunately, only the starting pages of the thread are helpful.

If you`re doing actual work, involving real time, then it means something to you! But it doesn`t always mean something to anyone else. So what happens when the two of you disagree as to how much work you`ve produced? That`s where contracts spell out exactly the definition not only work, but also of ownership.

I`d say have a contract. If someone is so freaked out about signing one, or so suspicious, then you likely will save yourself a huge amount of aggravation down the road with that person.

As a lawyer, I`m naturally going to tell you to use an effective and comprehensive contract.  Part of my recommendation stems from folks contacting me AFTER not using a contract, and wondering what they should do once the deal went sour.

I`m going to respectfully disagree with Smoots` comment above, and recommend against using standard form agreements.  Unless you fully understand each and every line of the contract, and how the law affects these terms, you really don`t know what you`re signing up to.  Using a lawyer experienced in that area is always a wise investment.


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Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
informationlaw.com
Now available on DVD!
The Legal Considerations of Starting an Online Business

Yes, a contract sounds like a great idea, not only for legal protection but also so that each party has the exact same copy of the specifics of the work that will be performed....and also for legal protection and let`s not forget legal protection!!

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www.EllayWestConcepts.net Ellay West Concepts (Freelance Commercial Writer)

Here is something that I used when I had my other business.  It was a few paragraphs that I add to the end of a proposal:

We require a XX% deposit via certified cheque or money order [or other method of payment] upon agreement for this project.  Once the site is approved and uploaded to our internet servers, the balance will be paid through automatic bank debts as follows:

XX% of the total amount paid the first day of month following the upload;
            an additional XX% on the first day of the next month and;
            the final XX% on the first day of the next month.

Quotations are good for 30 days and do not include any applicable taxes.  Site maintenance and hosting is charged monthly, deducted via automatic debts from a designated bank account.

Authorization to Proceed

I agree to the terms in the above proposal for the following projects (check all that apply):

Project One:              XXXX
Project Two:              XXXX
Project Three:              XXXX

Project Four:              XXXX

 

and grant authorization to proceed in accordance with these terms.

 

_________________________________

 

[Client’s Name and Signature]

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Daniel the Denim Doctor

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Nicole Annette