I often suggest to my clients that they should all have a standard contract for their businesses. Whether a business is a small or big, new or a seasoned enterprise, a standard contract will help to reduce the risks of disputes and facilitate a smooth operation.

Of course, to draft a standard contract is not cheap. You will likely require the assistance of a competent lawyer.

The lawyer will spend time to inquire into the nature and needs of your business in order to draft a contract that is effective and efficient. The lawyer must also research the relevant laws to ensure that the contract is in compliance with the law and is enforceable. As such, I do not recommend adapting home-made contracts without seeking advice from a competent lawyer.

The cost of drafting a standing contract may run from a few hundred dollars for a simple, one-page sale-of-goods contract, to tens of thousands of dollars for a complicated transaction, such as the sale of a franchise.  However, having a standard contract in place for your business will generally save you time and money in the long run. That’s why I call it an investment.