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1、一 寸 光 阴 不 可 轻 1 Script Unit 2 Contract Negotiation Pre-listening Activities Business Contract Basics Important Points to Remember When Putting Together a Contract If you spend enough time dealing with customers, you will at some point have to deal with the contracts related to the service you provid
2、e to those customers. At first, contracts can be intimidating, but like most things in life want to get a better practice, you will be better at dealing with these agreements. The following slides wont teach you to be a lawyer, but they will provide you some real world insights that will help you wh
3、en it comes time to deal with the contract. You wont believe how many contracts I have seen come across my desk, but did not have the proper signatures. What I mean by the proper signatures is that the client who is getting the product or the service has signed the contract, and the person that is s
4、upplying that product or service has also sign the same contract. You have to have both signatures on the same document in order for it to be a contract. A lot of smart contracts now have this wording below the signature line: authority to bind the company. This wording serves as a reminder to the p
5、erson who was actually signing the contract that they must have the authority to commit to the terms of the contract that they were about to sign. Basically the client by signing it says, yes, “I can pay for this product or service that Im about to receive”, and then subsequently the company represe
6、ntative is also saying, “Yes, I can deliver the product or the service as its outlined” in the contract. All contracts should have these basic elements: Number one: A start date When are you going to deliver the product or the service? Number two: Contract length This can be any duration of time fro
7、m a day, a week, a month, seven months or even four years. Number three: Details of the product or service This item can never have enough detail. The goal here is to make sure both parties know exactly what is to be done in the contract right down to the finest details. It is important to make sure
8、 everyones expectations are absolutely crystal clear. Number four: Prices Yes, it is important to list out the price you are charging for the service for the part that you are selling. Making sure that contract details what is included is just as important as to what is not included in the price. Wh
9、en you think price, think number of units, value, frequency and any and all discounts, and for how long that price will be in effect you may want to offer discounts are increases in your price if certain conditions apply such as a customer who buys more than expected or less than agreed to. Keep the
10、se options open because you never know what will happen in the future. Number five: Payment terms In the old days when business was a local exchange of goods and services, payment terms are paid much cash when you bought or received the product or service. As business became more 一 寸 光 阴 不 可 轻 2 int
11、ernational, it became inconvenient to pay cash, for say, shipload of iron ore, so payment terms became part of the contract. Payment terms and sure there is a timely balance between the delivery of the service to the payment for such service. Some companies can afford to extend payment terms for big
12、ger deals but some need to be paid immediately. When you are negotiating payment terms, ensure you can afford to terms you agree to, otherwise you may find yourself overextended credit wise and not be able to afford to pay your employees or other key providers. Number six: Mailing addresses. In your
13、 contract make sure you have the mailing addresses of that person who signed the contract and the mailing address and name of the person or department you were to send the invoices to. Same applies if youre getting paid make sure your customer knows where to send the checked, either way you will sav
14、e a lot of time in minimizing confusion, if youre at this to the contract . Number seven: Approved signatures. Now were going over this again but this is simple. Make sure the people who signed the contract have the authority to commit to the terms of the contract when in doubt, ask for proof. Dont
15、wrist disappointment or extra cost because you didnt do this step. When it comes to contracts and promises, the only valid promise is a promise that is written into the contract. While-listening Activities Video One Business Contract Basics: Important Points to Remember When Putting Together a Contr
16、act Everything else is simple words, unspoken words are not binding, which they were, but that is not the case. So the contractors say we will pick up and dispose of all access material, get it in writing, if the client says we will give you more business, and if you deliver on time, have them put that in writing. It is easy to believe or have faith in the other party when youre negotiating a contract. You want to take their word for everyone who has good intentions, but situatio
