Contracts are the backbone of every business relationship — from vendors and clients to employees and partners. But small businesses often fall into avoidable traps that cost time, money, or worse: legal trouble. Let’s break down the five most common contract mistakes and how to prevent them.
Handshakes and verbal agreements might feel sufficient, but they hold little weight in a dispute. Every business agreement — no matter how simple — should be in writing, signed, and dated. A written contract protects both parties and eliminates confusion down the road.
Downloading a free online template can be tempting, but most templates are too vague or irrelevant for your specific needs. Failing to tailor the language to your business, services, or state laws can leave you exposed. Always review and adjust templates with your actual operations in mind.
Clearly outline how and when you get paid. Missing details like late fees, refund policies, or payment schedules can lead to delayed payments or disputes. Make sure your contract includes exact payment expectations, due dates, and consequences for non-payment.
Scope creep — when a client expects more than what was agreed — usually happens because the original agreement wasn’t specific enough. Spell out exactly what you’re delivering, the timelines, responsibilities, and what’s not included.
Every contract should explain how either party can end the agreement. Without a termination clause, you could be stuck in an unproductive or costly relationship. Include details like notice period, cancellation fees (if any), and valid termination reasons.
At Arkstone Firm, we help small businesses create contracts that are precise, protective, and professional — without the legal jargon or high fees. Whether you're drafting from scratch or reviewing an existing one, we’ll make sure your agreement works in your favor.