Member Area Resources - Business
Working with Contracts

This 49 page guide aims to assist small business managers in using contracts confidently and appropriately as a commercial tool. It has been specifically designed to familiarise small business managers with the following issues:

• The essential ingredients of a contract
• More on ‘offer’: the lead up to the contract
• The different types of contracts
• Contracts: what’s in them Standard form contracts
• Specific small business relationships
• Understanding the paperwork: contract documents
• Contracts which hold information
• Intellectual Property and contracts
• Contracts completed using the internet
• Electronic Funds Transfer
• Resolving Disputes with contracts
• Bringing a contract to an end Summary checklist
• Additional sources of information for small business

Download the guide from the Australian Treasury or find out more here

Remember some basic rules

• Written contracts, where practical, are always the best form of contract to rely on.
• Keep records of any promises made to clients by parties acting for the business – this could be done on a standard form showing dates and times.
• You may find it useful to construct a model contract which can be filled in by the business at the time an agreement is made – this would ensure that you always have something in writing.
• Make sure that:
  • anything signed by the parties making the agreement is the same as the spoken agreement made
  • any changes made to an agreement are explained and documented with the other partiesall parties have a copy of the contract, along with any appropriate changes
  • any difficulties or defects regarding a product or service have been brought to the attention of all parties.
• Take special care:
  • when dealing with people who might be disadvantaged in terms of sight, hearing or language capabilities – so that they understand the contract, or at least have had legal advice
  • to be aware that contracts are regulated by unconscionable conduct provisions under the Australian Consumer Law
  • in expressing an opinion – particularly where it may be relied on as the basis of the agreement
  • when dealing with competitors, not to agree to fix prices, share markets, rig bids or restrict outputs not to directly or indirectly fix the minimum price at which a person may resell goods, or to supply goods or services on condition that other goods/services be acquired from a third party.
• Read everything before you sign it.
• Seek professional advice where you are unsure of the meaning or consequence of any contractual issue, especially if:
  • a substantial amount of money is involved
  • your possible liability under the contract is substantial
  • further similar situations are likely to arise
  • the other party is using professional advice.

Source: Department of Innovation, Industry, Science and Research