The Advantages & Disadvantages of Contracts for Service

by Tessica Cutchin; Updated September 26, 2017
While a contract can provide assurances and parameters, the language can sometimes cause issues.

A contract is a regular business document that lays out the expectations of both the client and the service provider. Clearly stated expectations provide assurances for both parties. Consider all aspects of a project before signing a contract.

Advantages

A clearly stated contract should have not just what the product or outcome should be, but items like deadlines, quality checks, timelines, dispute resolution process, outlines of grounds for termination or extensions, and penalties and provisions.

Disadvantages

Contracts must consider any possible situation that may arise and outline how it should be handled. If not, there is room for either the client or provider to stray from the contract. It comes down to a matter of semantics -- if you are not clear in your contract, there is room for interpretation after signing the contract.

Considerations

Consider legal aid when drawing up any kind of contract. When a situation requiring a contract does not warrant a lawyer -- say, a contract with a neighborhood teen who will mow your yard -- consider online contract templates.

About the Author

Located in the Appalachian Mountains, Tessica Cutchin, has been writing for various publications since 2006. Those publications included her university newspaper and online literary magazine. She currently writes a personal blog, which includes product reviews for Etsy.com shop proprietors. In graduate school, Cutchin received a Graduate Teaching Fellowship. She holds bachelor's degrees in English/education and a master's degree in English, both from Radford University.

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