Put it in writing: agreements that protect your business

An agreement should reflect what the parties are actually doing, not merely copy language from a document found online. Identify the correct legal entities, the person authorised to sign and the scope of the work or supply. Trading names alone may not tell you who carries the obligation. Clear identification matters if payment or performance later becomes disputed.

Describe deliverables in a way both sides can check. For a service, this may mean agreed outputs, exclusions, dependencies and approval stages. For goods, it may mean quantity, specification, delivery arrangements and acceptance criteria. The aim is not to anticipate every possible event; it is to remove avoidable uncertainty from the core bargain.

Record the price or the method used to calculate it, whether VAT is included where applicable, invoicing requirements and when payment becomes due. If milestones trigger payment, explain how completion will be established. Deal with approved expenses and additional work rather than leaving them to a later argument.

Consider what happens if payment is late and how disputes about an invoice will be raised. A clause that sounds forceful may still be inappropriate or unenforceable in a particular context. Consumer protection, credit legislation and other rules may affect the terms. Legal review should test the agreement against the actual relationship, not just improve the wording.

Businesses evolve, and so do projects. A change-control process should explain how a variation is requested, costed and approved. It should also identify who has authority to approve it. Without this, a casual conversation can become a disagreement over whether extra work was authorised at all.

Termination provisions deserve as much attention as the opening terms. Think about notice, a chance to remedy a breach where appropriate, payment for completed work and the return of property or confidential information. An exit plan helps both parties understand their responsibilities when the relationship is no longer working.

Many oral agreements can be binding, but proving their terms may be difficult. Some transactions have specific formal requirements, including certain land transactions and suretyships. Electronic communication can also have legal consequences. The question is not simply whether a signature appears on a page; it is whether the applicable requirements are met.

Be cautious with personal guarantees, broad indemnities, liability exclusions and restraint provisions. These can create exposure beyond the amount of an ordinary invoice or continue after the main relationship ends. A director signing a document should understand whether they sign only for the company or also accept obligations personally.

Store the signed agreement together with schedules, amendments and important notices. Make sure the people managing the relationship can access the terms they need. A good document does little practical work if the team carries on using different deadlines or informal approval processes.

The strongest agreement is not necessarily the longest. It is the one that clearly records the deal, allocates risk thoughtfully and supports consistent behaviour. Having the terms reviewed before signature usually gives you more options than asking what a disputed clause means after the relationship has broken down.