How often do you need to update your contracts and when do you need a client to sign a new contract? Let’s dive in and find out!
In this episode, you’ll hear the 3 key times you need to update your contracts:
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Click here to find the full show notes and transcript for this episode.
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Hey there, and welcome back to another episode of Sam's Sidebar, where I tackle your
Speaker:essential legal questions about starting and growing a legally protected online business
Speaker:in ten minutes or less every single Thursday here on the podcast.
Speaker:this week, I'll be answering your questions all about when and how you need to update
Speaker:your contracts.
Speaker:So, here's the question that I got from a listener, "How often do you need to update your
Speaker:contract and when do you need a client to sign a new contract?" This is actually a
Speaker:question that I get so often, so I'm really excited to dive in today.
Speaker:need to update your client and program contracts during a couple of different instances.
Speaker:The first one is my favorite one.
Speaker:That's when, number one, you learn a lesson.
Speaker:Which, I hope you learn often because it means you're paying attention and you're
Speaker:updating.
Speaker:client doesn't pay you or they quit on you one month into a three month contract, that
Speaker:sucks, and it's a learning opportunity.
Speaker:So, the reason that you typically have a question about what to do or what you can do
Speaker:legally is because the language that you need to guide you is missing from your contract.
Speaker:And I see that often when people don't have a lawyer-drafted professional legal contract
Speaker:for their clients.
Speaker:So, if a client cancels your contract because they said that they learned everything that
Speaker:they needed from you in one month, it's time to shore up your term and your termination
Speaker:sections, for example, and make sure that you actually have the language that you need to
Speaker:be able to navigate those situations successfully.
Speaker:second time that you'll need to update your contracts is when law changes, when laws
Speaker:change. So, from time to time new laws or regulations are introduced and it requires us
Speaker:to update or change our contracts and our policies.
Speaker:for my Ultimate Bundle members, for example, they love the fact that the Bundle gives
Speaker:them those lifetime updates and a monthly email newsletter from me with any changes that
Speaker:need to be made or alerting them to anything that's changed in the industry that they
Speaker:have to be aware of.
Speaker:So, that's one of the benefits to being in my Ultimate Bundle.
Speaker:You can get the link down below to join now, and save, and get a bunch of different
Speaker:bonuses.
Speaker:quarterly checkups.
Speaker:So, whether or not you learned a hard business lesson or whatever, a good practice, in
Speaker:general, is just a set of quarterly reminder for yourself using your favorite
Speaker:productivity tool - I use Asana - once per quarter to check in and see if there is
Speaker:anything that you need to update in your contracts or your website policies or anything
Speaker:else because you might have just forgotten.
Speaker:So, maybe set one for January 15th, April 15th, July 15th, and October 15th.
Speaker:And just check in and see is there anything that needs to be updated.
Speaker:You might not have anything that needs to be updated.
Speaker:You might. So, that's a good idea.
Speaker:I were you, I would take myself to a coffee shop, set a timer for, like, 30 minutes and
Speaker:take a quick look through my contracts and policies and my disclaimers.
Speaker:You might see something that you didn't even realize needs to be updated.
Speaker:So, it's a good reminder.
Speaker:Now, as for the second part of this listener's question about when do you need a client to
Speaker:sign a new contract, I typically say that any time your contract changes and the client
Speaker:is re-upping with you.
Speaker:So, if you've changed some term of your contract, like you used to allow refunds and now
Speaker:there is no refund, or you changed the termination clause, or whatever, and obviously if
Speaker:you changed the price, you would have them sign a new contract the next time.
Speaker:if at the end of the three month term, they say, "I want to re-up with you." You just
Speaker:say, "Great. I have a new contract.
Speaker:I'll send it over to you. Review and sign it and get it back to me." So, that's that.
Speaker:would also tell your client to review the entire contract and sign.
Speaker:As tempting as it is - this is just a little extra tip - instead of saying like, "I only
Speaker:changed this or I only changed that, so just go ahead and sign it." You just want to say,
Speaker:"Can you review the entire contract or just review the contract." Leave it really plain
Speaker:and general.
Speaker:You just don't want to make it seem so simple in case you did change something else and
Speaker:like you don't remember, that's the best way to go about it.
Speaker:if you feel like you're always in the dark about how and when to handle legal issues in
Speaker:your online business, you can download my free Five Steps to a Legally Legit Online
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Speaker:any stage in business.
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Speaker:So, thank you so much for listening.
Speaker:I'll drop all the resources that I mentioned below.
Speaker:If this episode was helpful, go ahead and send it to a friend.
Speaker:And thank you so much for listening.
Speaker:I'll see you next week.
Speaker:so much for listening to the On Your Terms Podcast.
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Speaker:podcast. You can also check out all of our podcast episodes, show notes, links, and more
Speaker:at samvanderwielen.com/podcast.
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Speaker:hi.
Speaker:remember that although I am a attorney, I am not your attorney and I am not offering you
Speaker:legal advice in today's episode.
Speaker:This episode and all of my episodes are informational and educational only.
Speaker:It is not a substitute for seeking out your own advice from your own lawyer.
Speaker:And please keep in mind that I can't offer you legal advice.
Speaker:I don't ever offer any legal services.