When you get started, you will start to enter into contracts with customers. When you do so, it is important to have a standard form contract that puts you in a position to protect your company. Almost every company should have a standard form contract when dealing with customers or clients. But, there really isn’t a standard form contract, as every contract can be tailored to be more favorable to one side or the other. The key is to start with your form of contract, and hope the other side doesn’t negotiate it much. Here are some key items to come up with your form of contract:

• Ask the Industry. Get sample contracts of what other people do in the industry. There is no need to re-invent a contract.
• Start with Self-Help Services. See if you can track down a standard form from one of the self-help legal services.
• Lawyers with Standard Forms. Make sure you have an experienced business lawyer doing the drafting, one that already has good forms to start with.
• Termination for Convenience. Don’t include a “termination for convenience” clause that allows the other side to get out of the contract for no reason. If the other side requires this, make sure you have a penalty for doing so.
• Watch the Length. Don’t make it so long that the other side will throw up their hands when they see it.
• Financial Terms. Make sure you have clearly spelled out pricing, when payment is due, and what penalties or interest is owed if payment isn’t made.
• Representations and Warranties. Try and minimize or negate any representations and warranties about the product or service.
• Intellectual Property. Include a provision that says that you own all your intellectual property,
• Confidentiality. Include a provision that confidential information may not be shared or used other than to effect the terms of the agreement.
• Limit Your Liability. Include limitations on your liability if the product or service doesn’t meet expectations. Make sure to provide that your liability cannot exceed the value of the contract and does not include lost profits or consequential damages.
• Acts of God. Include a “force majeure” clause relieving you from breach if unforeseen events occur.
• Dispute Resolutions. Include a clause on how disputes will be resolved. Our preference is for confidential binding arbitration in front of one arbitrator.

This is not an exhaustive list of all the provisions you can include in a customer agreement but should give you a good idea of the most important elements to include.