Sales & Service Agreements — Getting Contracts Right

Customer contracts are core to your business model. Clear sales or service agreements set expectations, limit liability, and define IP ownership, which is crucial for both growth and risk management.

Why it Matters

Your contracts define what you deliver, what you get paid, and what happens when things go wrong. Poorly drafted agreements can delay revenue, create liability, or cost you customers.

Founders Checklist

Use a clear, plain-English agreement for each customer or partner
Define key terms: scope, deliverables, timelines, payment terms
Include provisions for IP ownership, confidentiality, and limitations of liability
Set up a process for signing, storing, and tracking contracts
Customize for your business model: SaaS, services, licenses, partnerships

Founder Fails

No agreement > confusion about deliverables, unpaid invoices
Transferred IP rights accidentally > lost product ownership
Signed big customer without liability limits > exposed to massive risk

When to ask for Help

Before signing any customer or partner contracts
When offering pilots, trials, or discounts to enterprise customers
To customize terms like SLAs, payment structures, or renewals
If expanding internationally or into regulated markets
To review customer terms for IP, data use, and liability limits

Frequently Asked Questions

Q: Can I use a template I found online?
A: Not a good idea. Your business model is unique — and investor diligence often flags mismatched or missing contracts. Use a vetted base and tailor it.

Q: Should my sales contract include a termination clause?
A: Yes. Spell out when and how either party can exit, notice periods, and what happens to payments/IP upon termination.

Q: What about payment terms?
A: Be explicit:

Net 15 / 30 / 60
Late payment penalties (if any)
Whether recurring or milestone-based
Who owns deliverables if payment isn’t made