No matter what your business, it is vital to your protection and the satisfaction of your consumer that you have a written document in place that outlines your sales agreement.
For retail businesses, a formal contract with a customer isn’t necessary, but every customer should be provided with a written sales receipt that clearly outlines the specifics of the purchase, as well as your refund and exchange policy.
For almost every other type of business a written contract is the key to ensuring you have established solid communications and understanding with your clients. The act of developing a contract and reviewing it with your customer ensures that both parties understand the terms and conditions of the products or services.
Many businesses complain that the effort of writing up a formal contract is too time consuming. However, the time you will save from having to deal with customer confusion and non-satisfaction due to having a contract will likely equalize the amount of time it takes to put a written contract in place.
What should be in a basic contract?
Written contracts do not have to be lengthy documents filled with legalese. By simply outlining the details of the work taking place, costs etc., a contract helps to set the groundwork for effective communications with your client.
At the most basic level a contract should contain:
- Your company name and contact information;
- The client's name and contact information;
- The date of the transaction;
- A detailed description of the product or services;
- The total costs of the product or services;
- The dates in which the product will be delivered or services completed;
- Signatures from both you and the client as to your agreement on what has been written down in the contract.
- Any additional relevant information (i.e. refunds & exchanges, warranties etc)
A good way to determine what additional information should be included in your company’s contract is to think about any of the standard questions your clients ask you. And/or if you ever had to deal with a customer issue or complaint the type of information that would have been good to have written down and clarified in advance of the issue.
Don’t forget that a contract can be a “working document” to be amended as required during the transaction with your client. The key is to ensure you are keeping written documentation outlining your verbal communications and getting written agreement from both parties on the details.
Some contract writing resources:
Most office software packages have some free or sample contract-writing templates available for you to use or download.
Most office supply stores also have printed contract templates and template writing software available for purchase.
For contractors looking for sample contracts the Canadian Home Builders Association of B.C. has a number of sample contract templates available for purchase, depending on the type of services being provided. For more information visit the CHBA – BC online store at
www.shoutsecure.com/chbabc/content.php?id=187.
The Business Practices and Consumer Protection Authority (BPCPA) promotes a fair marketplace for BC consumers and businesses. The Business Practices and Consumer Protection Act outlines a number of requirements that contracts must include in British Columbia. For more information visit
bpcpa.ca or call 1.888.564.9963
Try googling “contract writing” or “contract templates” for wide range of online information and resources pertaining to contracts and some free and inexpensive contract templates.
If you can afford to it is probably a good idea once you have drafted a contract template to have your lawyer quickly review it to make sure it is sufficient for your businesses needs.