06/10/2026
Contracts 101 for Startups: The 5 Clauses You Can’t Afford to Overlook
You’ve built the idea, brought on a co-founder, maybe landed your first customer. Then a contract lands on your desk — and suddenly you’re agreeing to terms you don’t fully understand.
Here’s what we tell every founder: most business disputes don’t come from bad intentions. They come from vague paperwork. A well-drafted contract isn’t about planning for things to go right. It’s about protecting you on the day they don’t.
Here are the five clauses startups most often overlook:
1. Scope of Work. Be specific. “Build a website” isn’t a scope — “a five-page site, two rounds of revisions, delivered by a set date” is. Ambiguity is where disputes begin.
2. Payment Terms. Define not just when payment is due, but what happens when it isn’t. Net-30 terms, deposits, late fees, and kill fees all belong in writing.
3. Intellectual Property. This is critical for startups. If a contractor builds your product and the agreement is silent on ownership, you may not legally own what you paid for. Make clear that work product transfers to you upon payment.
4. Termination. Know your exit before you sign. How can either party walk away, with how much notice, and what’s owed at that point?
5. Dispute Resolution. Decide the rules before any disagreement arises — litigation versus arbitration, and which state’s law governs. By the time you need this clause, it’s too late to negotiate it.
The common thread: strong contracts make expectations explicit before money and emotions are on the line.
You don’t need to become a legal expert. You need a firm that understands the realities of building a business. At Accord & Shield, we help founders, entrepreneurs, and growing companies put agreements in place that genuinely protect them.
📅 Schedule a free consultation: calendly.com/accordshield
Accord & Shield Legal — protecting what you’re building. ⚖️