You know what’s better than simply having legal agreements in your business? Making sure they stay UPDATED throughout the year!
And there’s no better time to make sure your legal agreements are updated and accurate than at the end of the year.
You’re likely already taking inventory in your business, refining what needs refined, and removing what needs removed, so go ahead and make sure that your contracts fall on that list too!
And if you’ve yet to implement the legal agreements that I preach all the time? Then take this blog post as your sign to do just that and start the new year fresh and legal!
Below are the top 5 legal agreements that I recommend you revisiting before the new year – let’s dive in.
5 Legal Agreements To Update Before The New Year
1. Client Service Agreements
Service providers, this one’s for you!
As a lawyer that literally preaches having contracts in your business almost every single day, what I wish people realized is that simply having contracts is only the start of it. They aren’t something that you set and forget.
This is a mistake that I see business owners and service providers making ALL the time and failing to update your contracts as your business changes can lead to some major legal headaches down the road.
In order for your contracts to continue to serve and protect you and your business, you want to make sure that you’re doing at LEAST a yearly audit, but ideally this is something you’d do quarterly.
When revisiting your client service agreements, make sure you check for:
✔️Scope of Work
✔️Payment Terms
✔️Deadlines and Deliverables
✔️Intellectual Property
✔️Dispute Resolution
Checking for and updating each of these clauses ensures that your client contracts stay up to date and accurate, which means that you (and your clients) can be fully protected.
2. Privacy Policy
In addition to your client contracts, another major legal agreement that needs your attention every year is your privacy policy.
Your Privacy Policy should be updated so that your website users know what information of theirs is being collected, how it’s being collected, how it’s being used, and ultimately how it’s being protected.
And if you’ve yet to implement a privacy policy at all? Well, now’s the time… or else you’re putting yourself and your business at BIG risk. Read more about those risks here!
3. Terms and Conditions
Where are my digital product sellers at? Hey, hi I’m one of you too!
Your Terms of Use (often referred to as Terms of Purchase or Terms and Conditions) is the legal agreement that sets the ground rules and expectations for how your customers can use your products while simultaneously providing a safety net for you as the business owner.
Similar to how service providers have client contracts that tell their clients the nitty gritty details of how the working relationship will go, your Terms of Use essentially does that for you with digital products.
A few of the most important clauses in your Terms of Use to revisit and make sure are updated and accurate include:
✔️License to Use
✔️Intellectual Property
✔️Refund Policy
✔️Chargebacks
✔️Dispute Resolution
Click here for a deeper dive into each of those clauses so you can ensure your Terms of Use is doing its job!
4. Employee or Independent Contractor Agreements
In addition to your legal agreements that are used directly with clients and customers, you also want to make sure that you’re updating any necessary internal contracts.
If you have employees or independent contractors, it’s smart to re-issue their agreements to reflect the upcoming year to ensure that everyone is on the same page and ready to start fresh come January!
Employee contracts will differ based on your industry, but when it comes to independent contractors, there’s a few things you definitely want to include in the contract, including:
✔️Clearly Defined Scope of Work
✔️Payment Terms
✔️Project Timeline
✔️Quality Assurance
✔️Intellectual Property Rights
Click here for a deeper dive into each of these clauses!
5. Partnership or Operating Agreements
And lastly, if you have a business partner(s), a new year is the perfect time to revisit your operating agreement and address:
✔️Profit Sharing
✔️Decision Making Processes
✔️Exit Strategies
✔️Buyout Terms
✔️Any changes in roles or contributions
As someone that’s personally experienced a nightmare partnership in my time as an entrepreneur, I can’t emphasize this legal agreement enough!
Overall, as the year comes to a close, taking time to review and address the legal aspects of your business is a crucial step in setting yourself up for success in the year ahead.
Starting with these 5 legal agreements can ensure your business remains compliant, protected, and prepared for growth. By being proactive NOW, you can enter the new year with confidence, knowing your business is on solid legal ground!
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