How to Legalize a Contract Between Two Local Business Owners
February 16, 2018Not every town is a big and bustling city, rife with chain businesses from one side to the other. No, most towns are small and cozy, with businesses that are considered local, niche, and family-owned. With that said, many of these small businesses merge or make agreements with other businesses, ensuring both companies remain successful and afloat in their little town. So, how do two local business owners ensure their contract is legal and sound? Read on to find out.
Make Sure All Parties are in Agreements
Before a contract can be made, all agreements must be solidified verbally. Every party has to come to a unanimous decision to agree to the terms and conditions of a business arrangement. Ergo, the actual contract document should be drawn up, in both written and typed formats, with the conditions, agreements, and terms clearly outlined. Plus, each party has to sign their names to consent to the entirety of the contract.
Exchange Something of Value to Seal the Deals
Money is the most often exchanged valuable in contractual agreements. But, for small town businesses, it could be anything of value that the business owner considers a deal sealer. It could be a trade of goods, a trade of services, or a set cash amount. But the exchange needs to be well-documented on the contract to ensure all legal obligations have been made and met.
Document Everything in Writing and, if Possible, with Video
Handwritten contracts used to be enough. But most contractual agreements now need to be clear and concise in typed formats. The business owners need to sit down and write out their contract. Or, they can bring lawyers into the mix to solidify a legal contract with legal agreements. Another contractual method is video, as it clearly, better shows the agreements in real time. Plus, if anything ever happened that led to a breaking of agreements, the video evidence would hold up better in a court case.
Find a Reliable, Trustworthy Notary in Your Area
Before a contract can become 100-percent legalized, it needs to be signed and sealed by a reliable, trustworthy notary in the area. So, find out. Do a quick search of where to get a notary stamp near your current locale. It takes nothing to become a notary, and most people take it upon themselves to take the classes so they can notarize the documents of their friends and loved ones across multiple business industries.
Sure, there are a few hoops to jump through in creating and keeping up with a contract. But, when it comes to a solid agreement between two local businesses, the process is worth it. Contracts can protect assets, ensure the trustworthiness and actions of each business owner, and uphold the success of both involved companies.