Tag: Carter Law Firm

  • Unsolicited Advice: Shut Up

    “zip your mouth and shut up” by pHotosHo0x from Flickr (Creative Commons License)

    As a lawyer, clients come to help prevent or resolve legal problems. It’s my job to explore the pertinent facts of the situation, explain the legal implications to my client, present their options, and make recommendations. The decision of what to do is ultimately the client’s choice. When your lawyer recommends that you refrain from speaking about a situation publicly, that may be their polite way of saying, “Shut up. Anything you say will likely make your situation worse.”

    What Not To Do
    Today’s example of what not to do comes from Robert Scoble. After several women publicly accused him of sexual harassment and/or assault, he released a blog post entitled “No, of that I’m innocent.” In this post he wrote:

    I have rejected my lawyer’s advice to not make a statement and in a spirit of healing I would like to address the issue head on with open and honest dialogue.

    I’m glad he admitted that he was ignoring his lawyer’s advice. He went on to state what he called the “actual truth of the allegations” against him, naming his accusers, and calling out alleged misbehaviors of his accusers in their encounters with him.

    If your lawyer is telling you not to talk about accusations against you, assuming you’re already in a hole. Stop digging.

    Scoble also claimed he could not have sexually harass any of these women because he was never “in a position where I could make or break their careers.” Umm…that’s not how sexual harassment works. It can occur outside an employment, professional, or financial relationship.

    Listen to Your Lawyer
    When I first meet with a client, I explain that lawyer-client privilege applies, meaning I can’t repeat what I client tells me. The reverse is not true. I can’t control what a client says or posts when they leave my office. If I tell them not to talk about their case, it’s because I think that’s what’s in their best interest. As a third party, I’m not emotionally enmeshed in the situation. I can see the forest for the trees when they can’t and help move them towards the ultimate outcome they seek, and avoid pitfalls in the moment.

    When it comes to internet posts, here are some of my general suggestions:

    • Think before you post.
    • Today’s righteous indignation may be tomorrow’s regret.
    • Ditto for drunken rants.

    The internet never forgets. One post can cost you your career, marriage, or reputation. Even if you delete a post you regret creating, you don’t know how many people saw, copied, or downloaded the post before you deleted it. And there’s probably a copy of that post on a server somewhere.

    If your lawyer advises you not to talk about something online or otherwise, don’t do it. There’s a good chance you’re setting yourself up for more pain in the future, and there are some bells that we can’t un-ring.

    If you want additional information about the legalities of social media, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed. You can also contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list.

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    Ruth Carter

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  • Anthony Weiner Sentenced to 21 Months for Sexting: Processing My Thoughts

    Chainlink Prison Fence by Jobs For Felons Hub from Flickr

    This week, former Congressman Anthony Weiner was sentenced to 21 months in federal prison for “transferring obscene material,” aka sexting, with a 15 year-old. He’ll also have 3 years of supervision after he’s released, including internet monitoring, and will have to register as a sex offender.

    According to reports, here’s what we know about this case:

    • He knew he was talking to a 15 year-old using various social media platforms.
    • He sent the teen nude pictures of himself.
    • He asked her to sexually perform for him on Skype.

    Clearly his behavior was criminally and morally wrong.

    Anthony Weiner
    112th Congress
    from Wikipedia

    I’ve been mulling over this situation for the past few days, wondering if the punishment fits the crime. I asked friends who are teachers or the parents of tweens and teens for their reactions. Some said 21 months was too lenient, some said too harsh, and others agreed it was appropriate based on the available information.

    I’ve watched plenty of episodes of To Catch A Predator where men engaged in similar online behavior with people they thought were teens, and then showed up at a house to meet them before being arrested. At the end of the program, they reported the sentences of these perpetrators, and often they were sentenced to less than 12 months in prison. Some only got probation. It makes me wonder whether Weiner’s sentenced was based solely on his interactions with this minor or his history of sexting.

    It’s been sad to watch a charismatic up-and-coming Congressman destroy his professional life, his reputation, and his marriage because of his sexual compulsivity. The judge even acknowledged that Weiner has a disease. His past impropriety involved sexting with other consenting adults – not illegal, but not appropriate given his then-political position and being in a seemingly non-open marriage. Part of me wonders how his past behavior (where no criminal laws were broken) factored into the sentence.

    Likewise, I wonder if Weiner’s position as a public figure played a role in his sentence. The judge reportedly sentenced him to 21 months in part to serve as a general deterrence. While I respect that one of the purposes of criminal punishment is to deter others from acting in similar ways, I question whether Weiner was punished for the law(s) he broke or to make an example out of him. The law says he could have received a sentence up to 10 years, and 21 months was within the range of jail time requested by the prosecution, so I’m not saying the judge or the prosecutor acted outside the scope of their position, but I still wonder how the judge came to her decision.

    Of course, Judge Cote was there for the entire trial process, and I’m watching from the sidelines. I’m in no way questioning her judgment.

    This whole situation has also reminded me of how little I expect a person to be rehabilitated while incarcerated. I’d rather see people convicted of committing crimes, in part due to an addiction, be sentenced to a long-term treatment facility followed by jail time with ongoing counseling.

    The other thing this crime reminded me of is how important it is for parents to monitor what their kids are doing when they’re online. It’s not just an issue of where they go, what apps they’re using, what they say, and what pictures they’re taking, but also who is trying to communicate with their kids.

    Regarding Anthony Weiner and his victim, I have no answers. I don’t know what the appropriate punishment should be for adults who are caught sexting with teens, or whether Weiner’s sentence was too harsh or too lenient. I hope I’m not the only person who was inspired to step back and consider what is the correct legal and social response to these criminal acts.

    I’m constantly doing work related to internet law, so if you want to keep up with what I’m doing or if you need help, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my email list. (Please note: If you suspect you’re the victim of an internet crime, I will refer you to law enforcement.)

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    Ruth Carter

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  • FTC Rules: Easy to Follow, Easy to Forget

    Happy Lawyers Unpacking our Barbri Books

    I have the pleasure of speaking at Content Marketing World next month, in part, about the FTC rules that apply to advertising.

    Disclose, Disclose, Disclose
    The key to complying with the FTC rules for native advertising it to always disclose when you have a relationship with a company. That includes when you get a product for free, when you have a personal relationship with an officer of the company, and when you use affiliate links. In all of these situations, regardless of the platform, you have disclose when you are compensated for sharing an opinion or have a reason to be biased.

    These rules even apply on social media platforms, including Instagram and Twitter. Usually using the hashtag “#ad” is sufficient to comply with the rules. The purpose of the rule is to let the reader know about your potential bias before they form an opinion about the product or your review.

    The fine for violating these rules are harsh – up to $16,000 per violation under the current rules.

    See you in Cleveland!
    I have a goal of finding a way to climb this thing.

    So Easy to Forget
    These rules are simple to follow, and it’s also super easy to forget to remember to include the proper notice in a post. I had first-hand experience with this over the last few weeks.

    My colleague and I teamed up with Barbri to study for the California Bar Exam. They gave me my study course for free (I split the cost of my colleague’s course with him) in exchange for writing a weekly post about what it’s like to study for a bar exam while practicing law. We did 11 weekly posts, and I’ll write one more when we get our results this fall.

    Early in each post, I repeated verbiage that disclosed our relationship with Barbri – that was easy enough. Where I had trouble was remembering to include “#ad” on every social media post. It’s easy to forget to remember to include those three characters. There were many mornings where I had to edit my posts or delete and re-do tweets to add in “#ad.”

    I recently learned I’m not alone. According to research, 37% of publishers do not adhere to the FTC rules for labeling the material as sponsored. I’m curious to see if the FTC is investigating or fining content creators who don’t follow the disclosure rules.

    I’m super excited to talk about the FTC rules and how to write effective contracts for content creators at Content Marketing World. It’s one of my favorite events on online advertising. I’m just as ecstatic about speaking as I am about learning from my fellow presenters.

    I’m constantly doing work related to internet law, so if you want to keep up with what I’m doing or if you need help, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn.  You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Model Release and Regret

    “Subway Ballet” by J Stimp from Flickr (Creative Commons License)

    Recently, I received an email from a photographer (not my client) who had a question about the validity of model releases. As I understood the situation, he hired a model (over age 18) to do a photoshoot at his studio. The model was photographed nude for at least part of the shoot. The model signed a model release and was paid for her modeling services.

    After the photoshoot, the photographer censored some of the images to comply with Facebook’s rules and posted them online.  The model saw the images and was upset. The photographer asked me if the model had any authority to force him to take the images down.

    The Rules of Model Releases
    Model releases are standard in the photography world. In most cases, the photographer owns the copyright in their work from the moment the photo is created, not the person in the photo, and the model owns the right to publicize their own image.

    The model release transfers the model’s right to publicity in those images to the photographer, which allows the photographer to use the images per the terms of the release. Usually, when I write a model release or a model release template, the model gives the photographer permission to use the images in any way and for any purpose, without restriction.

    In general, once the model release is signed, the model’s given up their rights. If the model later regrets signing it, there may be nothing they can do to “unring that bell” unless the photographer is willing to negotiate another agreement – such as a copyright assignment where the model purchases the copyright rights in the images from the photographer.

    Think Before You Sign
    If you are a model, read the model release carefully. Never sign the release without reading and understanding it. Many of them allow for unfettered use by the photographer, including the right to license the images to others. Treat the images as if they are going to end up all over the internet, on billboards, on products or marketing campaigns you hate. Chances are, that’s not going to happen, but it could.

    I write not just as a lawyer, but also a model myself. On a number of occasions, I have written and signed my own model release. Models may give up substantial rights when signing these documents, so it’s not a decision to make lightly.

    What Could Invalidate a Model Release
    Even if the model release was written by a lawyer and appears to valid on its face, there are situations where a model release might be invalid due to the circumstances surrounding the shoot:

    • The model was minor (Depending on your state, minors may not be able to sign contracts or they can withdraw their consent upon reaching the age of majority.)
    • The model was an adult but lacked the capacity to enter into a legally binding contract. (These people usually have an appointed guardian to sign for them.)
    • The model was intoxicated. (In general, intoxicated people can’t enter into valid contracts.)
    • The model was forced to sign the contract under duress. (You can’t get a valid contract if you use threats or force to get someone to sign it.)

    There can also be instances where the photo in question was taken outside the scope of the model release and so the model release does not apply.

    I get questions every day about photography, image rights, and copyright. If you are a photographer or model (or aspiring to be one), it’s imperative that you understand these issues. Many disputes can be avoided with well-written contracts and accurate information. I’m constantly doing work in this area, so if you want to keep up with what I’m doing or if you need help, you can contact me directly or check out the other posts and videos I’ve done on the legal side of photography. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

    Lights Camera Lawsuit

    There’s always a need for quality legal information for photographers. That’s why I created an online course called Lights Camera Lawsuit: The Legal Side of Professional Photography to address photographers’ most important questions. I want you to feel secure in your business, confident in the way you operate day-to-day, knowing that you’ve set yourself up to get paid what your worth without incident.

    At $497, the course contains nearly six hours of legal information you can immediately apply to your business. That’s less than what I charge for two hours of legal work for clients!  

    Please subscribe for more information and to make sure you don’t miss out on any special offers or discounts.

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    Ruth Carter

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  • Ultrasabers v. Phoenix Comicon | Contracts Matter

    Lightsabers Long Exposure by Brian Neudorff from Flickr (Creative Commons License)

    Phoenix Comicon nearly started with a bang – literally. On the first day of the con, Mathew Sterling, arrived at the Phoenix Convention Center with a loaded shotgun, three handguns, and knives, allegedly intending to kill actor Jason David Frank and police officers. He was arrested and charged with attempted murder.

    Following this incident, Phoenix Comicon changed its rule for the event and banned all prop weapons. Likewise, it instructed vendors who sell prop weapons to wrap them when completing a sale. This is where the problems between Ultrasabers and Phoenix Comicon began.

    Ultrasabers sells replica lightsabers and was a repeat vendor at Phoenix Comicon. There was a dispute between the two, resulting in Phoenix Comicon demanding that Ultrasabers pack up their booth and vacate the premises on the Friday night of the con. It’s unclear exactly what transpired between these two companies. Ultrasabers and Phoenix Comicon each released a statement about this matter.

    As a lawyer, one of my first thoughts when I heard about this situation was, “This is why contracts matter.” For full disclosure: I don’t represent either party in this matter. I didn’t write this vendor contract. I haven’t even seen it. I’m just an outsider looking in.

    Contracts don’t exist for when things go right. Contracts exist for when things go wrong. A contract is a relationship management document; it helps prevent and/or solve problems between people in a relationship. It’s imperative that contracts are written with a thorough scope, and that the recipient review it thoughtfully before signing it, because if things take a downward turn, the contract will be the roadmap you rely on to achieve a resolution. Whenever a client or prospective client comes to me with a contract dispute, one of the first questions I ask is, “What does your contract say?” Footnote: The most common response I get to this question is, “We didn’t have one.”

    In regards to Ultrasabers v. Phoenix Comicon, I don’t know what actually happened between the two or whether this situation is resolved at this point. I hope this issue was a reminder, or perhaps a wake-up call, to people who participate as a vendor or performer to read their contracts carefully before signing them. If you sign a contract and you later regret it, there may be nothing you can do to change the rules of that relationship at that point.

    If you have questions about your contract needs, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Can You Afford to be an Entrepreneur?

    Money Unfolding by CreditCafe.com from Flickr (Creative Commons License)

    When I decided to launch this law firm, a good friend and fellow entrepreneur/lawyer warned me: “You’re going to need 6 months’ worth of money and 12 months’ worth of patience.” He was right. Fortunately, I had nearly 3 months from deciding to opening my practice until our first day in business, which gave me time to research and formulate my offerings and tap into community and professional resources to get my business off the ground.

    Other entrepreneurs aren’t that lucky. They may not have the time and/or money to consult counsel prior to launching a new venture. Even on a condensed time frame or on a shoestring budget, your legal needs should be part of the discussion and plan.

    Full-Time Venture Needs Financial Backing
    If you want your new venture to be your full-time job, you need to be prepared for the potential financial strain that comes with that undertaking if you don’t have a spouse or other income supporting you in the meantime. You may have the gift of time, but you can only operate your business as long as you have income or savings to cover your bills. I don’t recommend jumping into a new venture without some type of financial safety net.

    For entrepreneurs starting with a side hustle, you have the opposite issue. Your regular job can pay your bills while you develop your business, but it limits how many hours you can work. And depending on your circumstances, you job may not provide much money to put towards your business after paying your bills.

    Make the Business Fund Itself
    While every business needs some seed money to get started, make your business fund itself. When you decide to start a business, make a list of all the services, equipment, and supplies you think your company needs. Then step back and categorize each item as “Must Have” or “Nice To Have.” Ask a trusted colleague or friend to review your list and challenge you on what you need.

    Many businesses don’t need much to get started. When I started this firm, I only needed an LLC, client contract templates, computer, scanner/printer, website, email address, phone number, and business cards. I gave myself a limited budget for supplies, bar dues, and to pay for my LLC and my accountant, and after that, I didn’t buy anything for the business until the business could afford it. (Even if my personal account could afford it, I made myself wait until the business could afford it.) It forced me to be scrappy, creative, and thoughtful about how I spend my money. It’s something I recommend to other entrepreneurs, including seeking out low-cost and free options when appropriate.

    Prioritize
    I regularly receive emails from people who need help with the legal side of starting a business, and some of them claim that they can’t afford an hour of legal services. Sometimes I wonder if these entrepreneurs didn’t do any research into the expected costs of a consult, contract, or trademark when creating their business budget. (When people can’t afford my firm, I’m happy to provide referrals to other options and/or tell them what things they can do themselves – like filing an LLC with the Arizona Corporation Commission. The forms and instructions are online.)

    A fellow entrepreneur suggested that these potential clients don’t see value in paying for quality legal services. That sounds plausible. Many new entrepreneurs are focused on their expected success that they don’t want to ponder the what-if scenarios. In many ways, quality contracts and other legal services protect you when things go wrong. You often don’t need to rely on them when things go right.

    My recommendation for all new entrepreneurs is to meet with a business accountant and a lawyer to make sure you’re starting out on the right foot, and that you understand the legal implications of your venture. If you have questions about business needs, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Copyright Notice Done Right

    Copyright Notice on Burn

    Last weekend, I watched a documentary, Burn, about the Detroit Fire Department. (It’s an intriguing documentary film about these amazing people and how the economy’s crash impacted these firefighters and their community.)

    As a lawyer, one of the things I liked about this film was the simplicity of its copyright notice. It had the standard FBI and Interpol warnings (which play through while I’m grabbing a snack), but this last notice caught my eye. It said, “This copy of ‘Burn’ is licensed for Private Home Viewing Only. Any other use is prohibited.” The notice went on to state how to request permission for other uses.

    One of the complaints about the use of legal verbiage in everyday life is that it’s often too long to be worth reading, it’s filled with complicated legalese, and it’s in a tiny font. (How many times have you accepted the terms on a site without reading it?) This notice combats everything that’s wrong with the current systems:

    • It used plain language.
    • It was short.
    • It was readable.

    A ten year-old could read this and understand what it means. I have never met a ten year-old that’s tried to read the FBI warning before watching a movie.

    This notice made me smile. I wish more creators do things like this when declaring their rights and informing others how to seek permission for different uses. Sometimes complicated legalese is necessary, but generally not in mundane situations. Legalese in everyday life should use everyday language.

    I’m an advocate of writing contracts and notices in plain English and keeping them as short as possible while still being effective.  If you have questions about your copyright and contract needs, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • B2B Contracts Don’t Work in a B2C World

    “Rabo Bank” by bertknot from Flickr (Creative Commons License)

    Over the years, I’ve seen a number of entrepreneurs try to adapt a B2B contract template to use in their B2C business.* This is like using a hammer to tune a piano – they’re using the wrong tool for the job. I just doesn’t work. Entrepreneurs who have B2B clients or B2C clients have similar needs when it comes to their service contracts, but the nature of the relationships are drastically different. (The reverse is also true – don’t try to adapt a B2C contract for use with B2B clients.) There are several reasons to not use a B2B contract with B2C clients:

    You’re Going to Scare Your Clients
    If your clients are Joe Average people, not entrepreneurs, a heavy-duty business contract is going to scare the bejezus out of them. I would be worried that they will be intimidated or confused by the verbiage.

    A contract is a relationship management document. The purpose is to put everyone involved on the same page. Ideally, your contract will have all terms outlined in a single document so that either side can refer to it when they have a question. And contracts don’t have to be in legalese to be effective; I recommend using plain English and keeping the terms short and simple whenever possible. The goal is to prevent confusion, not create it.

    A well-written contract can build rapport with your client. An effective contract will lay out the value you’re giving them and provide security in regards to how you perform the scope of work. A poorly-written or confusing contract may make a client apprehensive about hiring you.

    Unnecessary Provisions
    There are provisions that may be essential in a B2B contract that would be absurd to include in a B2C contract template, such as an independent contractor provision. I’m pretty sure the Smith family knows when they hired you to take their portrait, that they knew they weren’t hiring you as an employee. Likewise, non-solicitation and non-compete agreement would be bizarre in a contract for consumers. The nature of the relationship often doesn’t warrant provisions like this.

    When I write a contract template (B2B or B2C), I start by trying to envision the full relationship between the parties, how they’re going to interact, what each side is giving and receiving from the relationship, and what my client’s pain points and concerns are. That gives me a starting point for writing an effective contract that fits their needs and addresses common problems in advance.

    The Value of B2B Contracts for B2C Companies
    There’s nothing wrong with an entrepreneur using a B2B contract as part of their research for what they might need for their business. It can provide ideas for what terms or phrasing they may want to use. Additionally, there are some terms that are frequently found in B2B and B2C contracts, such as scope of work, payment, intellectual property, and dispute resolution. Note: even when the headings in the contracts are similar, how the provisions are written may vary vastly based on the needs of the situation where they are used.

    If you need a contract for your business, don’t just use a contract from a fellow entrepreneur. Instead, if you get a template, have a lawyer review it to make sure its suitable for your needs. They can also fill in gaps in your provisions and ask questions you didn’t think to consider. And if you have business that does B2B and B2C work, consider using different contract templates to suit the needs of your clients.

    A contract template is an investment in your business. If you sign a contract and later regret it, you may be stuck in that situation. If you have questions about your contract needs, you can contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

    *B2B = Business to Business
    B2C = Business to Consumer

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    Ruth Carter

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  • Staying Out of Trouble on Facebook Live

    Selfie by Reyes Blanch from Flickr (Creative Commons License)

    Facebook Live is one of the more recent developments in live video streaming on the internet. When used properly, it’s a lot of fun to get a real-time glimpse into someone’s life or a breaking news situation. It has value, but it also has its place.

    The Same Rules Apply
    Legally speaking, the rules that apply to Facebook Live are the same rules that apply to live video apps. In 2015, I wrote a post about the legal dos and don’ts of Periscope. Those same rules apply to Facebook Live.

    The challenge with live video . . . is it’s live. You can’t edit a live performance, so if you do something inappropriate or illegal, assume someone saw it, recorded it, and you may have to face consequences for it later. If you’re not jumping on Facebook Live to show a newsworthy event in real-time, I recommend you take a minute or two before you go live to think about the scope of want to talk about, what topics or language are out-of-bounds, and when you’ll know to stop the recording. This is especially true if you’re distraught or experiencing extreme emotions. If you’re especially upset, it may be better to wait a few hours until you’ve calmed down or record your thoughts without being live.

    Playing Music on Facebook Live
    A friend asked about the legalities of playing music during a Facebook Live broadcast. The rules that apply to radio stations, retail stores, and cover bands apply to a person who is live streaming. If the music is not in the public domain, the copyright holder has the right to control where their music is copied and played. Facebook Live is likely a public performance, so even if you own a copy of the song for personal enjoyment, you can’t play it publicly without a license. In these situations, the only person who can come after you for infringement is the copyright holder. If they don’t know or don’t care about what you’re doing, you may never get in trouble. (Of course there is an exception for someone who uses Facebook Live to give commentary or criticism of the music – that may be protected by fair use.)

    Think Before You Post
    As always, think before you post/broadcast yourself. Once you put something out there, you can never fully take it back. What seemed like a good idea in the moment may be tomorrow’s regret, with long-lasting implications. Last summer we saw the disturbing Facebook Live video of a Georgia mother beating her 16 year-old daughter. The woman wasn’t charged with assault, but I wonder what will happen the next time she applies for a new job and the news stories (with video) from this incident dominate the results when prospective employers search for her name.

    These are my rules of thumb when it comes to posting anything on the internet:

    1. Don’t post anything online that you wouldn’t put on the front page of the newspaper.
    2. Assume everything you post will be seen by four people: your best friend, your worst enemy, your boss, and your mother. If you don’t want to one of those people to see what you’re thinking about posting, don’t say it.

    The laws that apply to the internet is an area of law that is constantly developing as cases are decided and new statutes are added to the rule book. If you want additional information about the legalities of social media, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed. You can also contact me directly or connect with me on Twitter, Facebook, YouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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  • Avoid Litigation: Contracts and Timing

    Water wheel close-up by Edward Webb from Flickr (Creative Commons License)

    The most efficient way I’ve seen to avoid problems in a business contract situation is to set up the relationship between the parties in such a way that each side is forced to perform to get what they want from the other side. Just like a water wheel feeds the machine that keeps the wheel turning, the parties should be compelled to give the other side what they need.

    Contract = Relationship Management Document
    A contract is a merely a document that outlines a relationship between parties – what each side must do, and what they get in return. Every contract should have a dispute resolution provision that outlines how the parties will resolve problems if they occur. In a perfect world, the parties will never need to resort to this clause.

    While a good contract will have a thoughtful dispute resolution clause, a great contract will structure the parties’ relationship in such a way that neither side can fathom breaching it.

    Structure the Relationship to Feed Everyone’s Needs
    When I begin work on a new contract, I ask my client to paint me a word picture of the people involved and the relationship between them. I try to understand not only what each side is giving and getting, but also their motivations.

    One of the obvious potential problems in a contract relationship is that one side will perform their part to the benefit of the other, and the other side doesn’t reciprocate as required in the agreement. This may be situation where one side takes your money and runs, or conversely, you do work for your client and they don’t pay you after they’ve received your work product.

    The best way to avoid this situation is to set up the work flow so that each side doesn’t get what they want until the other side has done what they promised to do. For many entrepreneurs who are professional creatives, I recommend that they write their contracts to state that the client won’t receive the final product until their bill has been paid. Likewise, for photographers, I recommend that the contract state that the client won’t see the proofs until they’ve paid for their shoot in full.

    Please Pay Here by Steven Depolo from Flickr (Creative Commons License)

    Real Life Example
    I recently worked with a graphic designer who is a smart entrepreneur with a brilliant contract. I’m creating my first online course and hired her to create the logo. Per our contract, I paid 50% up front and she got to work. She designed me a brilliant logo that fits the course and my personality. She said she’d send the final files when she received the balance.

    That email came at the beginning of a week when I wasn’t home where the company checkbook lives. I told her this and she said she didn’t mind waiting until I could send payment. (Did I mention she’s a friend?) I was happy she held her boundaries to make sure she got paid before she sent the final work product. It’s not that I wouldn’t have paid her, but it was the right thing to do as a business owner.

    If you choose not to write your contract with these provisions, you may be in a situation where you have go after the other side for payment or performance, possibly hiring a lawyer to write a demand letter, or taking the other side to court. If it’s a relatively low-dollar amount, you may end up in small claims court where you may get a judgment in your favor, but you still need to collect and the amount of time and energy involved to go through the process may make you question whether it was worth it.

    This is why a good business lawyer is an investment for your business. They can see the potential pitfalls in your business and help you avoid them and advocate for your rights when necessary. If you need help with writing a contract that fits the needs of your business, you can contact me directly or a social media lawyer in your community. I post about these issues on Twitter, Facebook, YouTube, and LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

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    Ruth Carter

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