Hi Reader!
When I update a contract for a client, one of the things I’m often doing is inserting boringly specific language.
Far too often, creative business owners try to provide flexibility in their contracts by using vague or ambiguous terms.
They use things like “reasonable turnaround” or “as quickly as feasible”.
But this vague or ambiguous language has multiple meanings.
And it’s highly likely that you and your client aren’t on the same page about their meaning.
A client who deals with a chronic health issue wanted to keep the timeline flexible in her contract, so that she could account for days that she wasn’t 100%.
Instead, I suggested we put the worst-case scenario timeline in the contract. This would help her in two ways:
- Her clients would start the project with the longer timeline expectation.
- They would be delighted if she delivered early.
Clients also sometimes want flexibility because they want to be able to give clients a pass when it seems fair. (This comes up a lot with reschedules.)
But here again, I remind them that you can always waive a contract clause if you think it’s the best move for this relationship and your business.
But you can’t draw a harder line than your contract allows for when you’ve got a bad apple.
👉 Your action item
Pull up your contract and find any vague or ambiguous terms. And replace it with boringly specific language.
If you only have 20 minutes this week, the task above is the most important thing to do. But if you have a little more time, keep reading.
Chat soon,
P.S. Tomorrow is Pi Day! I’m using it as the perfect excuse to make one of my favorite pies: Banoffee Pie. About a decade ago, I was given an Irish family recipe for it, but this Food Network recipe is pretty close. Will you be baking a pie? If so, send me your favorite recipe.
The clause to notice
One small section of a contract that can have an outsized impact later.
This week’s clause: Payment terms
Another common place I insert boringly specific language is in the payment terms section. Because when you aren’t clear here, you might find yourself waiting, and waiting for your money.
What to look for:
- Payment is only made once the client approves, but there is no specificity around the approval process.
- Long payment windows (like Net 60 or Net 90).
- No mention of late fees or interest.
If contracts are starting to come up more often in your business, the Contract Decoder breaks down clauses like Payment Terms so you know what they mean before you sign.
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How to audit your contract for hidden stress points
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Other things on my radar…
- A good reminder that a work doesn’t fall into the public domain in all countries at the same time. So if you use a public domain work, you might have to restrict where it’s available.
- The Supreme Court is not going to consider whether AI can be a copyright author. This is good news for most of us, but if you do use AI in your process, this article has some tips on how to make sure it has copyright protection.
- The “fake discount” has been around for a while, but both the FTC and the courts are cracking down on it. If you offer discounts, this article has good ideas on how to make sure your discount isn’t perceived as fake.
