Yes! Always put agreements in writing to prevent disputes that might arise. Whether you're making a deal with a relative, friend, or stranger, get it in writing!
A contract is any written agreement between two or more parties. Formal contracts are long and define the obligations of each signatory. However, a contract can be one sentence. So long as all parties sign, and it doesn't break any established laws, it's legit. A witness is also customary.
Most contracts are legally binding — but not all. Agreements that don't conform to state, federal, or international law may not be recognized as binding by a court of law.
Well-written contracts serve as a failsafe. They outline the rights and responsibilities of all involved and can be a legal shield. Detail is important, as is finding an attorney with experience in a given field. For example, you don't want a lawyer with family law experience to draft your cryptocurrency contracts.
A breach of contract is when someone violates the terms of the agreement. In such situations, the aggrieved party sometimes seeks damages, but they usually bear the burden of proof and must demonstrate there was a valid contract in place that the defendant broke.
Contracts come in a variety of forms. Traditional contracts are agreements specific to a particular situation. Common examples include employment contracts and vendor contracts. The possibilities are endless. But what some people may not realize is that website terms of service, and privacy policies are also forms of contracts.
We've heard it time and time again: "My business is just starting out. I don't need website terms or contracts." But people who go that route sometimes find themselves in legal hot water sooner rather than later. But there's also a good marketing reason to get your terms and policies together now: individuals trust sites and businesses with professional terms — and trust is a huge component of gaining and keeping customers. Moreover, search engine bots prefer websites with proper policies. Granted, the addition of an acceptable use policy won't rocket you to the head of the SERP line, but every little bit of on-page SEO helps.
Licensing terms can be helpful to users. It lets them know if they can copy information found on your site. If you're not worried about others copying your content and posting it elsewhere, put that in a user agreement — it may save you from liability down the line if someone uses the content they copied inappropriately.
If you want people to give you credit for the content on your website, or restrict the copying of content and images altogether, make that clear in a user agreement. Cyber libel claims are on the rise; so as an added layer of protection, add a disclaimer of liability to your site.
A professionally drafted user agreement is a must for e-commerce platforms.
Businesses that allow people in the European Union to order from their online stores must comply with the General Data Protection Rule (GDPR), which outlines strict online privacy and data selling protocols. Furthermore, if you're an affiliate for a product, this point of interest must be disclosed to website visitors to comply with Federal Trade Commission standards.
Online regulations and statutes are perpetually in a state of flux, and you should keep up with them to protect your business and assets. Tip: Every time the big players, like Google, Amazon, and Facebook, send out an update to their policies, you should also consult an Internet law attorney to ensure they don't need one too.
Contracts have long provided immunity to businesses and service providers. While there are limitations, with the correct language, parties have the power to indemnify themselves from certain types of legal actions and responsibilities. For example, Sony PlayStation's terms of service bars members from joining a class-action lawsuit against the company. (Yep, you are allowed to do that!)
Contracts can also be used to set community standards. For example, to make their online environments more enjoyable for all players, many MMORPGs updated their user agreements to prohibit the use of certain language and imagery in their virtual worlds. Some people may see this as censorship, but it's not. Companies and organizations enjoy the right to set terms, expectations, and parameters — that's part of what the free market economy is all about.
The Kelly Law Firm writes tailored contracts for businesses. We have considerable experience working with:
If you want air-tight agreements and contracts that will shield you from frivolous lawsuits, protect your assets, and shelter profits, let's talk.
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