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Todd Schwartz
04-17-2012, 11:26 PM
Well it finally happened, my hobby needs to pay for itself and and although I have done small jobs for friends and family, I am now looking at a much larger opportunity to do some custom work. I am comfortable with the job and the creditability of this opportunity, but I want some paperwork / contract in place protecting myself.

If someone has a contact they are willing to share it would be most appreciated. I am not looking for an extensive legal doc but rather one that states the terms of payment, non disclosure of confidential materials, release if I mess something up, ..... You get the idea.

Thanks,

Todd

Tim Bateson
04-18-2012, 9:31 AM
Keep in mind that such contracts are only good if everyone honors it. Otherwise they will likely have more money for lawyers than you do.

Todd Schwartz
04-18-2012, 9:46 AM
Thanks Tim, I understand contracts are usually as good as the paper they are written on, but want a starting point to make sure we both are on the same page, know the expectations and that there are no surprises (or at least reduce the unanticipated) on either side.

Just looking for items that need to be documented prior to taking the job.

Thanks,

Todd

George Beck
04-18-2012, 10:15 AM
Todd

I visited a lawyer before I started my business and I think it is a good idea. It cost a bit but drawing up a simple sales contract as well as she looked into things like zoning for me I think is worth the expense. It also establishes a relationship with a legal entity which is not a bad idea. The biggest reason for having a contract is in the event that you are not paid, this puts you in a better position to collect. I still recommend that before launching any business go see an attorney, an insurance agent and a CPA first. I happy to say that I have never had to use any legal force but one never knows. I have also found this to be helpful when pursuing license agreements and larger customers as it lends credibility to the business entity.

Just my opinion

George

Bob Lloyd
04-18-2012, 10:26 AM
Todd

A lot of the wording is boiler plate but there may be specifics for your situation that you might want to include. I have always believed that it is just as important to also specify what is not included, it avoids misunderstandings and assumptions. Also, I would suggest wording that any problems are settled by arbitration.

Mike Null
04-18-2012, 12:54 PM
Don't get tangled up in your shorts.

If you're talking about customer contracts, in 15 years I've never had the need for one. I do this full time and with some major customers.

Tim Bateson
04-18-2012, 1:20 PM
Don't get tangled up in your shorts...

ROTFL!!!! :p :p :p :p That's a quote I'll remember. Thanks Mike.

Martin Boekers
04-18-2012, 2:01 PM
I'm with Mike, unless you do very large orders you probably may only need some disclainers on an order
form, such as responsability for damaging an item, missing a dealine etc. Remember, a contract covers
you performance too. :)

Michael Hunter
04-18-2012, 4:12 PM
Personally, if I was engraving high value personal items (such as iPads, phones, laptops etc.) I would want something that looked formal and legal and would get the customer to sign it to show that they agreed to the terms.

Since I don't want to do these personal things, I do not bother with the full "terms" thing (who reads a page full of small print anyway).

What I do do though, is include the important stuff in every quote I send out -

1 How and when I am to be paid (up-front by pro-forma invoice, or 5 to 30 days depending on the customer and size of order)
2 Minimum order value (in case the customer decides to order just one to try).
3 Packing and postage/delivery charges (in general terms - e.g. £5 packing plus carriage at cost).
4 When I would normally expect to deliver (number of working days).
5 Any disclaimers (such as "wood is a natural material and might have knots").
6 How long the quote is valid for.

This does not take up much room on the quote, is quick and easy to read and the customer does not have any excuse for "not understanding" as it is in simple English (not legalistic mumbo jumbo)

I regard it as important that any problems when the order is received are sorted out straight away - after a few days the customer can reasonably assume that their order has been accepted.
Most likely this will be delivery timescales due to getting stuff from suppliers or holidays. Sometimes it is pathetic artwork.


Today's silly was a good one -
Q Where are my labels? I paid you for them last week. [the money was received by bank transfer]
A Sitting in my workshop as you STILL have not sent me the delivery address.
The joys of running a business via email!