Legal topics can be pretty complicated stuff, especially things like intellectual property, business entities, and contracts. It’s dense. I completely understand this. It’s not sexy. But it CAN bring you lots of money easily and quickly. Now I’ve got your attention…

In fact, legalities are the foundation of any thriving, money-making endeavor. You may need some time to sit with this and process through it, but once you do, it will flip your business switch from black-and-white to full Technicolor. Once you work with these legal concepts, I dare say you will even come to enjoy them. Okay, okay, maybe that was a stretch. A lawyer girl can always hope…

Allow me to address the five words that make me panic when talking to a new entrepreneur: “I don’t need a contract.”

On its face, this is a true statement.   You do not need a written contract, but if you would like to build relationships with clients, grow your professional reputation with intention, create a clear container for your passion, and manifest like a pro, I strongly suggest you get some written agreements in place.

Let’s begin the de-bunking…

The tricky concept here is that contracts do not need to be written to be created and enforceable. You can create an oral agreement in a seemingly casual conversation. There ultimately need to be three things for a contract to exist: an offer, an acceptance and consideration.

The terms “offer” and “acceptance” are concepts that people generally easily follow, but this third element – “consideration” – that one trips people up.

Legal Consideration is simply an exchange of value from one person to another.

So, an example of this could be person A (“client”) receives a promise for 6 months of personal and business coaching, and person B (“coach”) receives a payment of $5,000. BAM! Consideration. There was a meaningful exchange – a promise for money.

My heart absolutely breaks when a client comes to my office after investing time, life energy, passion, money, and soul into a relationship with a business client, and I need to tell them that no lawyer can help because there was no consideration to support the formation of the contract. No contract = no enforceable agreement. Here is where I could probably mention that contract is an entire part of the law under which a claim may be brought into court. For most entrepreneurial businesses, a contract theory will be the one to support you if you have a money dispute, so just trust me that it’s of vital importance.

If that technical legal stuff above didn’t convince you, here is a completely different and utterly non-legal way of thinking about contracts – it’s a powerful tool for manifestation.

We all know that the most powerful manifestation tool is the written word, right? Journaling, posting, blogging – these are all highly effective at communicating with the Universe your intentions. I argue written contracts are the most powerful tool for manifesting. Think about it – if you include in your contract with a client that you charge $1,000 hourly, this means that’s your rate. Once the client signs the agreement, you will be, in fact, earning $1,000 hourly.

Clearly there are several provisions that merit conscious and intentional consideration, and this is but an introduction to an important piece of the contract puzzle.

Take time to add in consideration into your agreement – your clients, work ethic and intentions will thank you.

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January 2015 Issue