In the 21st century, professionals are all aware of the long history of law-breaking and lawsuits that have taken place all around them. Which is why when doing business, contracts are important because they outline expectations for both parties, protect both parties if those expectations aren't met and lock in the price that will be paid for services.
In any business environment, it is critical to have legal documention in place to establish a system of rules and policies governing the legal enforcement of promises. Whether it be to simply memorialize a common understanding of an organisational relationship of govern future venture needs, the protections afforded by strong contracts are invaluable to operating a successful business.
Having written a contract, means that everyone knows what they are supposed to do and when, and makes it easier to resolve any disputes that may arise .
A contract is a written agreement between two parties that details the terms of a transaction. In a business, it generally states the work that will be performed, along with the important information like due dates and costs.
It can be easy to make your contract far longer and more complicated than it needed to be , but it's best for everyone to try keep it simple. Still, your business should at least include the following:
•Full scope of work to be performed including all deliverables
•General timeline or, if possible, exact due dates for each milestone. Nothing that you discussed should be left out of the contract if you want it to be enforceable.
• Payment amounts and terms- How many days will the person have after delivery to remit that payment, and how will it be paid.
• The circumstances under which the contract can be terminated and how that will be handled- if dispute mediation becomes necessary, the contract should also outline how that will take place.
If written properly, your contract will make sure the service provider receives payment in a timely manner. For big projects, this generally means multiple small payments as certain milestone are reached. A publisher buying an author's book for instance, will offer issue one advance payment when the contract is signed and another when the completed manuscript is submitted.
Hopefully, you'll never have to take legal action based on the contract, which means the project will end and you'll move on to the next project. Both parties should keep a copy of the contract in file for several years in case a later issue should arise.
Hundreds of people, may it be musicians, employers, project managers, are left faced with storm each year regarding the misunderstanding of the contract drafted for certain purposes . This leaves a list losing mostly their properties , jobs and other projects.
An artist that asked Strictly Mashashane not to reveal their name, together with the name of the company, tells us that greed and desperation for quick fame got the better of him when he was offered a contract and he signed without having to understand some terms and conditions. In return, he was left bankrupt. "1st months of partnership with my Management, was exciting until we face a deadly pandemic- Corona virus in 2020 and our country got locked out. We never survived until now.
An Advocate from Mashashane, based in Polokwane says that dealing with such matters is not as easy as these contracts binds one to a point of al-de-sac and managements makes sure that there is no easy way out. Most of these cases are caused by individuals who doesn't seek professional help before signing and document until they are screwed.
For legal advices,
MC Ledwaba Attorneys
Ledwaba@mcattorneys.co.za
0655518553
15 President Paul Kruger St Polokwane South Africa