Key Contract Essentials Every Business Should Know
Contracts: Where to start (and what not to miss)
When reviewing or drafting a contract, there is a simple framework I always come back to, six deceptively basic questions:
- Who am I dealing with, and are they the right legal entity?
- What is each party doing (or delivering)?
- Where is the work happening?
- When does everything need to be done by?
- How will obligations be performed—and are the right people/resources lined up?
- How Much will it cost—and what are the payment terms?
But that’s just the starting point.
Many businesses skip straight to price or deliverables and miss the quiet heavy-lifters in a contract: the so-called “standard” clauses.
Things like:
- Survival clauses (what continues after the contract ends)
- Governing law (which state courts apply in a dispute)
- Entire agreement clauses (to lock in what’s been agreed)
- Severance clauses (so the whole contract doesn’t fall apart if one bit is unenforceable)
And finally, be aware of what’s missing. Sometimes, legislation fills in the blanks whether you like it or not. Ignoring the Australian Consumer Law, Corporations Act, or sector-specific laws can cause you pain later.
I’ve pulled together a practical checklist to help you get on top of your next contract—before it gets on top of you.
Sign up to read the full article and more helpful tips.