What Makes a Good Contract? 5 Traits Every Business Agreement Should Have
It’s Halloween, but when it comes to your business contracts, the only surprises you want are the ones in the costume drawer, not lurking in the small print. For founders and growing businesses, contracts can sometimes feel as mysterious as a haunted house. Yet, good contracts are there to protect, empower, and support, not to frighten you into second-guessing your every decision.
At Looking Glass Solutions, we believe contracts are practical tools for growth and clarity, not just safety nets for worst-case scenarios. So, as the autumn leaves fall and the shadows grow long, let’s cast a clear light on what separates a strong, reliable contract from one that’s better left buried. Here are five traits every business agreement should have, no smoke, mirrors, or monsters under the bed.
- 1. Clarity and Plain English (No Spells or Riddles) The best contracts are easy to read and understand. If you’re left decrypting long sentences or pulling your hair out over legal jargon, something’s gone awry. Every business owner should be able to pick up their contract and confidently explain what it means to a colleague (or a friendly ghost). Ambiguity creates risk, clear contracts create certainty.
Top tip: Insist on plain English, and ask for explanations until you feel completely comfortable. It’s your business, your terms, never sign anything you don’t fully understand.
- 2. Defined Roles, Responsibilities, and Deliverables A good contract spells out exactly who is doing what, by when, and what happens if things change. The more specific you are about deliverables, timelines, and responsibilities, the less chance there is for scary surprises. The aim is to leave nothing open to interpretation: if the plot thickens, the contract should clarify the next move, not add to the confusion.
Questions to ask: Does the contract state what you and the other party are each responsible for? Would a new team member (or your future self) be able to step in, read the contract, and know exactly what’s required?
- 3. Sensible Payment Terms and Fair Exit Clauses Unclear payment terms are the contract equivalent of wandering into a dark forest without a torch. Lay out exactly how, when, and on what basis payments will be made, no guesswork, no hidden traps. Similarly, every contract should explain how either side can end the agreement fairly. Good exit clauses are about protection for both parties, not just locking someone in.
Checklist: Are payment timelines realistic? Is the process for ending the contract fair and transparent, with enough notice to avoid drama? Make sure there’s nothing hiding in the small print that could jump out later.
- 4. Proactive Risk Management (No Skeletons in the Closet) Every agreement involves some risk, but a solid contract brings those risks out into the daylight and handles them openly. Look for clear provisions around liability, confidentiality, dispute resolution, and insurance. If something goes wrong, does the contract explain what will happen, and how issues will be resolved? Or are you left haunted by uncertainty?
What to check: Are risks identified and allocated sensibly? Do you understand the limits of your liability, and is the insurance requirement practical for your business? Remember, the right contract should make you sleep easier, not keep you up at night.
- 5. Mutual Benefit and Consistent Values Finally, a good contract helps both sides succeed. No one wins if only one party feels protected or empowered. Look for agreements that reflect your business values, fairness, transparency, and partnership, rather than those that read as “one-sided” spells. Contracts are powerful tools for building trust and long-term relationships. They work best when everyone’s interests are considered, and the tone matches the way you want to do business.
Key takeaway: Ask yourself, “Would I be happy if the roles were reversed?” If the answer is no, the contract probably needs work.
Why All This Matters
At Looking Glass Solutions, our mission is to turn contracts from a source of anxiety into a source of strength. By focusing on these five traits, you can turn your business agreements into frameworks for growth, clarity, and commercial confidence, not mere legal safety nets or (worse) a haunted script you hope no one ever reads again.
If you’re staring down a contract that gives you the chills, now is the perfect time for a check-in. Whether you need a contract review, negotiation support, or just someone to explain the small print, we’re here as your strategic partner. After all, scary surprises are best saved for Halloween, not your business dealings.
Wishing you a calm, confident autumn, free from contract scares!
Ready for contract clarity? Book an ‘Ask Alice’ slot on our website, and let’s banish the unknown together.