Entrepreneur Advice

Written by: Beatrice Yabarra

If you run a business, your business depends on all kinds of relationships: With customers or clients; with employees; with vendors of goods and services; with lenders and landlords, just to name a few. Each party to a business relationship brings to it a set of expectations with respect to what he or she will give and get. A contract is a useful tool for describing and defining the expectations of each party to a business relationship. Why is this important?

Think of a business relationship as a house. A contract is the blueprint for building that house; a reference for its operation and maintenance. A contract captures the rights and obligations of each party; the terms and conditions of their respective performance; and what each party will gain from the relationship. A contract articulates remedies in the event that one or the other party fails to perform as expected/required. By clearly defining the terms and conditions of a business relationship and the consequences of a failure to perform in accordance with those terms and conditions, a contract provides a measure of certainty, and can quantify the upside and downside inherent in a business relationship.

In addition, contract answers questions at the outset, establishing the basis on which the relationship will go forward. Knowing and understanding your rights and obligations reduces the possibility of a dispute; and, if a dispute does arise, a contract provides the framework for its resolution. That’s the “why” of contracts. Contact me for assistance in negotiating, drafting or reviewing contracts for your business.

In conclusion, next time you have an agreement or a business transaction with another party, make sure that you have a contract in place to protect your busniess.

Here at Luxur Lux, we target the female community. Females who are dreamers, believers, achievers, and girl bosses. Females from different backgrounds all unite as one in this magazine. The business gal, the fashionista, the traveler, and the list goes on. We celebrate diversity and inclusion of all women from different walks of life. Each issue allows you to experience the true beauty of women from cover to cover.

Luxur Lux is a bi-annual publication info@luxurluxmag.com www.luxurluxmag.com