Here are some quick tips for businesses entering into a contractual relationship with another business. (Thread)

If you are entering into a contract with another company you should make sure that their company exists and/or is active. You can often check their active status on the SOS.

When you are drafting and reviewing the contract make sure the contract is between two companies do not list yourself personally. Even if you are a single-member LLC use your LLC name as the party to the contract.

Since we are talking about parties. When you are entering into a contractual relationship with another business verify that the person entering into the contract on the behalf of the business has the authority to do so, i.e. they are an owner.

When you are entering into a business contract with another business be aware if they have any DBA or tradenames or if there is a parent company, and whether or not they should be a party to the contract. Be mindful sometimes businesses DBAs are not owned by their LLC.

At the end of your agreement, you should include a signature block. The signature block at a minimum should reflect all of the binding parties, their position, name, effective date, and their signature. Think; if this goes badly who would I want to fix it.*

Always talk about the money! How are you are getting it? How much was agreed upon? The Frequency? What happens if it's late? What happens if it's not paid? Fees and Taxes.

Never forget to under your intellectual property rights. Who owns what? What happens to IP made during the relationship?

Read the contract. Get a lawyer to review the contract. Understand the contract. Make sure everything you want or that was agreed upon is in writing; not just in an email or DM.

Be proactive in your contract drafting and negotiation it will help you avoid potential future litigation. An attorney reviewing and negotiating a contract is less expensive than an attorney litigating or negotiating with an unfavorable contract.