7/7/2021 0 Comments
Business contracts may not be limited to a one-time engagement. At times, the engagement lasts longer and is progressive.
What this implies is that the contract may be progress-based. When such is the case, it is important that the process is properly mentioned in the contract and both parties are well aware of the clause.
For the uninitiated, adding a record-keeping process in a “progress based contract” assures that the terms of a business contract are clear and that the parties agree to the same.
Avoiding to overlook the documenting process will save you from the hassle of clearing confusion in the future.
This article is specifically designed to help you understand what a progress-based contract is and how adding the recordkeeping procedure to the process helps.
What Is A Progress Based Contract?
Consider a situation when the arrangement between the two parties is for some specific time duration, say 24 months.
Throughout the same, one of them is expected to pay for the services offered by the other.
Or say, if one of them is a buyer and the other a seller, the latter is expected to ship products every three months.
Depending upon the schedule , the buyer must pay for the products shipped, either before or at the time of delivery.
This is a “progressive business contract” and works differently in comparison to the conventional ones.
It could be a partnership agreement or a vendor agreement that provides services or goods, or a vendor contract for a market,, store, construction site, or construction project where goods or services are required over a certain period.
The duration could be determined beforehand alongside a conditional obligation to perform the task.
It is important to document or keep a record of the process so that it can be referred to as and when needed.
This helps make things clear for all, avoiding confusion or errors. For an instance - whether and when the product/service was delivered/executed/provided.
If yes, was it on time, what was the condition, is there anything pending/left from the previous milestone for later, etc.
Everything here must be recorded, that’s why you need to have agreed upon recordkeeping practices.
Yoel Molina, Esq. (AKA “Mo”)
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Yoel “Mo” Molina, I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..
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"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC. In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP. As in, the very next day! I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo. I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered. I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!). I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"