I want to make sure that your documents are “legally binding.”
Binding. Ow. That sounds painful. Reminds me of Spanx® that are WAY too tight.
“Legally binding”? What the heck does that really mean? And why should you care?
Well, here’s the skinny:
When your legal documents are “legally binding”, it’s like having Spanx® for your business. But, in a size that fits you really well.
How so?
Your legal documents are the undergarments that hold your biz together.
You know, the strong, supportive documents that prevent spillage, muffin-top, and things falling out all over the place.
“Legally binding” documents hold everything in… TIGHTLY.
They contain the RIGHT legal language that you can actually HOLD people to if they:
- Call you at 10 o’clock at night begging for a refund.
- Have 4 amazing coaching calls with you and they are LOVING the process and THEN they want to cancel.
- File a Paypal complaint to all of a sudden stop paying you. (Trust me, It happens!)
So how do you make sure your legal document is “binding”?
You need to use clear language that both sides commit to. It’s the committing that makes it binding.
That’s why you want to have people agree to things like a:
- Strong refund policy – so you are super-clear about where you draw your lines.
- Detailed disclaimer paragraph – so you limit your risk.
- “No guarantees” clause – so you aren’t promising results.
- Your program description and expectations – so there’s no confusion.
- Payment methods and timing – so you get paid on time.
The list goes on and on!
You need your legal documents to be:
1. In writing.
Put it all in black and white, baby!
2. Substantive & thorough.
Not random stuff you pulled off of the internet because that can leave huge gaps – and we all know that a gaping hole in your Spanx® is the LAST thing you want!
3. Signed.
It’s MUCH easier to prove both sides agree when a contract, like a Client Agreement for your one-on-one services, is signed by both people.
And, for your group programs and online courses, you want to use a checkbox.
You want your purchasers agree to your Terms of Use BEFORE they enter their credit card number. The checkbox is the gold standard because it shows the purchaser had to physically take an action to agree to your terms (even if they didn’t actually read them).
Yep, you need Spanx® for your business to cover your buns.
Just make sure your legal documents – and your Spanx®! – are in the right size.
Spanx® is a registered trademark of Spanx, Inc.
