Five Clauses Every Small Business Contract Needs
Long contracts do not stop disputes. Clear ones do. Most of the contract problems we see come from a handful of clauses that were either missing or copied from somewhere else without reading. Here are the five that earn their place.
1. What exactly is being delivered
Describe the work, the deliverables and the dates in plain language, in the body of the contract, not in an email chain. If the scope changes, change the document. Half of all payment disputes are really scope disputes.
2. When and how you get paid
Amount, due date, method, and what happens if it is late. Interest and the right to pause work are more useful than any threat of court.
3. Who carries which risk
Limitation of liability decides what a dispute is worth. Cap your exposure at a sensible figure, usually the fee, and exclude the losses you cannot control. Do not accept an uncapped clause because the other side sent it first.
4. How either side gets out
Notice periods, what counts as a breach, and what has to be handed back on exit. A clean exit clause is the difference between a two-week wind-down and a two-year argument.
5. What happens when you disagree
Name the process: a meeting between principals, then mediation, then court or arbitration. It sounds like boilerplate. It is the clause that keeps you out of court.
Standard contracts at Northgate are fixed fee and quoted in writing within 24 hours of the first call.