Like the issues of copyrights and licensing, contracts can also be very complicated. But once again it’s important be informed on the basics. I’ll brush over the top to help get you started, but as always take some time to do some research on your own.
A contract is basically a written agreement between two or more parties. While verbal contracts are binding in court they are also very difficult to prove so you want to make sure you get everything in writing.
Signing contracts: Before you sign a contract make sure you read and understand it in its entirety. If you don’t completely understand a contract don’t sign it until you have your lawyer or someone you trust look over it with you. You can also research things you don’t understand online. If the issuer of the contract won’t give you the time to look it over fully, or have a lawyer go over it DON’T SIGN IT!! Rushing you to sign something quickly is a key indicator of a bad deal. A contract should also be very specific, laying out the exact terms of the deal including: the names of the parties involves, dates of when the contract was signed, dates of how long the contract is binding, full details of the exact amount of money to be exchanged, full details on additional fees, details on what is considered a breach of contract, etc. If you’re contract isn’t specific and leaves you with lingering questions DON’T SIGN IT! Bring the issue up with the contract’s writer and have them revise it until all the details are laid out fully and clearly.
When will I Have to Sign a Contract? - As an independent business person you'll find yourself signing many contracts over the course of your life. For example: if you buy new software for your computer, at some point during the instillation process, you will have to click the “I agree” button under the licensing agreement, that’s a legal contract. Or if you’re publishing your work on iTunes, you will have to agree to their conditions, which is another contract. Remember our cartoonist couple Julius and Shenene Anderson? Well if they publishined their work with Seeking Liminality Studio, I would have them sign a confidentiality contract. Confidentiality contracts restrict people from being able to say certain things publicly. So their contract might allow them to speak freely about the work they own the copyright to, but not say a word about other Seeking Limianity Studio publications.
Writing Contracts: Writing a simple contract isn’t too hard. You just have to be sure to be as specific as possible. There are also templates and guides online that can help you draft different kinds of contracts. But some contracts can be very long and difficult. In that case, it’s best to hire a professional to draft the contract for you. Just make sure you work closely with that person and read over it first to make sure that the contract fits your needs.
When will I have to Write a Contract? - Freelancers will find themselves drafting more contracts then independent publishers. Let’s go back to the Andersons. Let’s say that Shenene Anderson is having a huge divorce party with all of her friends. So she decides to hire a metal band to rock the party all night long. Before the party Shenene would have to meet with the band and come up an agreement. Shenene might say that she wants the band to play from 6:00 PM to 2:00AM, and she wants the sexy bass player to flirt with her lady friends. The band agrees the play between those hours but the sexy bass player will only flirt with the ladies if the band has access to the open bar along with the guest. With the terms of the deal agreed upon, the band would then draft up a contract with the exact details or their agreements, including their fees, which would be signed by the newly divorced Ms. Anderson.
Tips on contracts:
~ Although I’ve said this before, it’s worth repeating: get everything in writing! It’s much too difficult to prove a verbal contract in court. If you simply must agree to something via a verbal contract make sure you have a witness (who isn’t involved in the deal) present. You can also write up a contract after a verbal agreement is made and have your client sign it later. Just make sure they sign it before you begin your work. Which leads to my next little nugget of advice…
~ Don’t do anything until all the contracts are signed. While trusting people is sweet and lovely, in the business world it’s also very unrealistic. Don’t lift a finger until all the details are worked out and the client sign the contract.
~ Make sure that all of your contracts are written in permanent ink or typed. Judges generally don’t consider contracts written in a way that can be easily altered (like pencil) as 100% credible, because a hateful client can easily accuse you of changing the contract after it was signed. Or someone can alter your contract to their advantage and make it difficult for you to prove your innocence.
~ Contracts can come in both digital and paper form. They are both equally valid according to the law. But to be safe, invest in ‘Adobe Acrobat Professional’ which will allow you to create professional contracts in a locked PDF format that can’t be altered. A ‘word’ format contract is just too easy to change.
~ If you have the creative ability (or the money to hire someone else with the creative ability), take the time to design some official company stationary. Company stationary should include the company name, address (web and/are physical address), phone number and maybe even a watermark of the company logo. You can then print all of your physical contracts on company stationery, and use the digital design as a background for your PDF contracts.
While not completely necessary, company stationary gives you a bit of an advantage in the court room because it’s much harder to falsify a watermarked document. You can use software like ‘Microsoft Word’ and ‘Microsoft Publisher’ to easily create stationary and watermarks. Of course, you can also use imaging software like 'PhotoShop' as well, but that might require a little more effort on your part. Whatever works for you.
~ Never be too trusting. While your mother may have taught you that being open and trusting others is a good trait, it can also lead to your professional downfall. You have to be able to separate your business life from your personal life. When it comes to your business, friends, relatives, lovers and strangers should all be expected to sign the same contracts because sadly, you’ll probably have a harder time getting your uncle Jimmy from Chicago to pay you for your services then a complete stranger. It’s well known amongst successful business people that friends and family are more likely to rip you off than your average client. If you’re worried about causing family drama, it might be best not to work for your friends and family at all.
Being a good business person also means that you won’t always be liked. You have to make sure that you’re always looking out for your business, and considering what’s best for your business. This means that sometimes you’ll have to ruffle some feathers. You need to be able to stand up for yourself and you must be brave enough to use that oh so difficult word: “no.” Don’t hurt your business (and ultimately yourself) by trying to hard to please others.
Hang in there because next time we’ll finish up the legal segment!
