Business Contract Template

About this template

This Business Agreement Contract Template helps you state and confirm a service-based relationship between the two parties.

• Clearly specifies the rights and obligations of both parties, including clauses for confidentiality, indemnification, limits of liability, dispute resolution, and governing law.
• Formal deliverables acceptance process, including testing periods, cycles for correcting defects, and deemed acceptance.
• The work product is assigned to the Client, but the Provider's pre-existing intellectual property is licensed or protected.
• Download this customizable template in Word or PDF format for your convenience.

While this business contract template works best for a single project, transaction, or service, you can also apply it to multiple projects. In that case, the scope of services should be detailed in separate Statements of Work (SOWs).

Alternatively, if you are entering a long-term or ongoing relationship with a client, consider using a Master Service Agreement (MSA) template.

Who it’s for

If you own a business that purchases or provides professional services, technology solutions, or active support to other businesses (aka B2B), having a properly drafted legal agreement is a must. Examples include:

• Agencies or consultants who offer repeat or bespoke services
• Software implementers and integrators, and IT service providers
• Independent contracted service providers for larger clients
• Small business owners working with multiple clients
• Companies engaging vendors, suppliers, or third-party partners

While the template serves as a simple version of a business contract, you can adapt it for more complex cases where one performs milestones, delivers quality, meets acceptance criteria, and assumes further obligations.

When to use this template

Consider having a signed business contract before starting any business relationship. This could include exchanging goods, providing or purchasing services, or sharing sensitive information. Below are some common scenarios where business contracts are absolutely necessary:

• Working with vendors or suppliers: The business contract sets expectations for delivery, quality, and payment with a vendor agreement.
• Partnership where two parties must agree on and outline each person's roles, ownership, and exit conditions in writing.
• Buying or Selling Products in Bulk: Such a business contract sets prices, terms, and payment methods, followed by an invoice.
• Hiring a Service Provider: When you hire a freelancer, consultant, or agency to do work for your business.

What’s included in the template

While business contracts differ in the level of detail and the complexity of legal language depending on their use case, they all share certain clauses common to most scenarios. This template covers them all, including:

• Parties involved: This section identifies legal names, addresses, and contact information that pertain to the client and provider.
• Scope of Work: This describes the services for provision and any materials or equipment in need.
• Payment Terms: Payment schedule, amounts due, and invoicing conditions in detail.
• Acceptance Criteria: Describes testing applicable to how deliverable items will be accepted.
• Intellectual Property Rights: It protects any intellectual property you own when someone creates it during the contract.
• Confidentiality Clause: Ensures privacy for your sensitive information. However, if you consider exchanging any sensitive information before drafting the contract or starting cooperation, make sure to have a standalone Non-Disclosure Agreement.
• Indemnification: Defines how each party is responsible regarding liabilities and damages.
• Termination Clauses: Specifies conditions and penalties when the contract ends.
• Dispute Resolution: It outlines the procedure for resolving disputes within it, such as when someone mediates or arbitrates.

How to write your Business Contract

Creating your own business contract takes just a few simple steps, as the template includes easy-to-fill fields and customizable clauses. All you need to do is:

1. Provide Legal Names and Contact Information

Include the Client and Provider's names, addresses, and contact information. It is essential for identification purposes, as it will be factored into the enforcement of the agreement.

2. Make statements of work

The best practice for business contracts is to refer to a Statement of Work document, which describes deliverables. The Statement of Work also covers milestones, pricing, schedule, acceptance criteria, and terms for project termination.

3. Negotiate Payment and Acceptance Terms

You can schedule payments, accept within timeframes, and term invoices for your business needs. Clearly state the tests you accept and document what you need to avoid potential disputes.

4. Review the intellectual property, confidentiality, and licensing language

Consider defining terms and determining rights for proprietary code, tools, data, or trade secrets, and if the given definitions apply to your business.

5. Establish Law and Dispute Steps

Select the state law and agree if arbitration or court will govern the contract. These provisions help avoid uncertainty over expensive litigation down the road, if the parties disagree.

6. Review and Sign

Once you have completed the final contract and Statements of Work, sign them (either electronically or in print), and have a fully executed copy of the contract exchanged between parties.