Terms of Agreement Parts and Purpose

Terms of Agreement clearly outlines the contractors responsibilities, price, scope, and detailed services to be provided. Both parties must agree upon the terms that will define the relationship. The contractor will usually draw up the agreement based upon the services and quote given to the company. This is a legally binding document that should leave no questions unanswered and can be referred back to if necessary.

General Terms
As a business operator, certain policies should be transparent for all clients to be aware of while conducting business with your company. These can include late payment policies, what to do in the case of a stalled project, payments options, and other specific things relevant to your clients industry or project.

Parts of the Agreement

• Description & Scope of Services - What services will you provide? Be as detailed yet concise as possible
• Deliverables - Will you provide reports or any physical or electronic paperwork?
• Price & Payment Arrangements - How much will the services costs and how will you accept payment? Do you require a deposit? What does it cover? When are payments due?
• Responsibilities - What will you be responsible for completing or sending the client?

A well written terms of agreement can resolve any challenges that could arise in the future between contractor and client. It is a good practice to use a uniform agreement and only alter those portions pertaining to the client. Once work has commenced on the project, any changes in the agreement should be documented as well.

Do you use standard contracts from services like RocketLawyer or have you created your own Terms of Agreement?