You need legal protection when big gift basket orders arrive. But what’s considered big, and which orders need a contract?

Estimated reading time: 3 minutes

Size may matter

A goal you may have when owning a gift basket business is to acquire a big order. Whether you’re operating a business that caters to individuals or one that always markets to corporations, a large order has potential to come your way.

The phrase large order is subjective. It can mean 25, 50, 100, or more gifts within one order. It’s up to you to determine the meaning of large in your business.

When such orders arrive, all types of thoughts go through your head.

  • What products do I need?
  • Which suppliers will I buy from?
  • How will the order be delivered?

There are other questions depending on the process, especially because this is the money making part of your business. Most of all, you’ll need a contract. This document ensures that you identify all of the verbal agreements between you and the client. You cannot speak with the person and hope that both of you will remember the conversation. Every detail of the order must be written as a contract and signed by you and the client.

Please note that I am not an attorney. This article provides you with simplified information to discuss with your legal representative.

Online documents need not apply

Wouldn’t it be wonderful if you could download a general contract found online, include your business name and client’s name on the document, and simply sign? That would be great. However, contracts found online are usually insufficient if a problem requires a court appearance. At that point you’ll need an attorney, and that attorney will point out the problem within the contract that she could have fixed.

If you don’t consult an attorney to create a contract for you, one that is customized for your business, you will need an attorney later if a legal situation occurs.

What to include in your contract

As mentioned, a small business attorney will be adept at crafting your agreement. To help the attorney understand your needs, it will be important for you list the details of the order. Those details may include:

  • Type of order
  • Customized products
  • Recommendations
  • Delivery details
  • Payment schedule

Which orders need a contract?

Think long and hard before you accept a large order and do not finalize all of the details through a written agreement. Not having such a document is similar to sabotaging your business, and you’re not making gift baskets to cause yourself grief.

Be careful if a client attempts to talk you out of creating a contract. Let such talk act as a warning. The same client may want to change the contract midstream, which causes another warning. The most concerning problem is if a client does not pay you up front. You have been warned.

Prepare a contract, have both parties sign it, and process the order according to the document.