Many agencies and clients enter a relationship rightfully assuming only the best. Unfortunately, they often fail to prepare for the worst. A properly drafted contract can be a great risk management tool (and even limit insurance needs, thus saving dollars).
A well crafted Engagement Contract or Master Services Agreement can ensure both the client and agency understand all the risks associated with the business deal and provide a solid foundation for a mutually rewarding relationship. Most importantly, it spells out the relationship and forces the parties to think about and understand potential risks in the deal.
We often spend time where other do not. Case in point: boilerplate terms. These terms usually found at the end of a document are often misunderstood and overlooked, yet they can be strategic tools if a dispute ever arises.
While no one ever wants to go to court to resolve a dispute, if they are forced to, the terms of the contract will control. Spending a few dollars up-front can yield exponential savings on the back-end.