Protecting Your Business: Contracts 101

Good contracts prevent expensive disputes

Many business disputes are not “bad luck” — they are missing clauses. A good contract clarifies expectations, allocates risk, and gives you a roadmap when something goes wrong.

1) Scope of work / deliverables

Define what is being provided, timelines, acceptance criteria and what is excluded. Ambiguity is the #1 cause of disputes.

2) Payment terms

• Price, milestones, and invoicing.
• Late payment penalties (if any) and suspension rights.
• Tax treatment and who bears costs.

3) Termination and exit

Include termination for breach, for convenience (if appropriate), notice periods, and what happens to work in progress.

4) Liability and indemnities

Cap liability where reasonable. Clearly define what is covered and exclude indirect losses where appropriate.

5) Dispute resolution

Consider negotiation → mediation → arbitration/court. Choose venue, governing law and jurisdiction to avoid confusion later.