Say Goodbye to Long, Legalese Contracts for our Marketing Services!
Written by Robert Harrington, a seasoned entrepreneur, marketing communications expert, and owner of Mach4 Design, who draws on two (sometimes painful) decades of experience to empower businesses.
Written by Robert Harrington, a seasoned entrepreneur, marketing communications expert, and owner of Mach4 Design, who draws on two (sometimes painful) decades of experience to empower businesses.
At Mach4, we’ve decided to transition to plain language contracts across all our marketing and design services, including content marketing for social media, AI for marketing, web design, and the rest. We’ve never been a fan of long, convoluted contracts (no offense to the attorneys in the room), but at the same time, some of what we do can be pretty complex. Unfortunately, as a New Jersey Marketing company, we also know all too well the need to protect ourselves when something doesn’t go as planned. Over the last 20 years, we’ve developed some rather complicated contracts, terms, and an extensive master services agreement.
That said, we also want to be completely upfront and clear about the project expectations, limitations, and responsibilities – from both sides. After much discussion with business-owning friends and, yes, even our attorney, we’ve decided to take the plunge to plain-language contracts.
Unfortunately, as a New Jersey Marketing company, we also know all too well the need to protect ourselves when something doesn’t go as planned.
Three Main Advantages with Plain Language Contracts for Marketing & Design
Part of this decision is driven by what I see are the three key advantages that plain language contracts offer:
Ease of Understanding
Plain language contracts enhance accessibility by removing barriers caused by convoluted legalese. They improve clarity, facilitate communication between parties with varying levels of legal expertise, and ultimately contribute to fostering a fairer contractual environment with reduced potential for misunderstandings and disputes. By using clear and straightforward language, these contracts ensure that all parties involved fully understand their rights, obligations, and the potential consequences of not complying with the terms.
Transparency and Trust
Using clear and understandable language is essential in fostering transparency and building trust between parties. When communication is straightforward, it eliminates any potential misunderstandings or confusion that may arise during negotiations. This clarity can significantly contribute to smoother discussions, as both parties are on the same page and clearly understand each other’s expectations. Furthermore, when trust is established through effective communication, it paves the way for stronger business relationships.
Efficiency
Simplifying contracts so clients can easily understand them without needing legal consultation is a great way to streamline the process. When contracts are clear and straightforward, it not only expedites the signing of new contracts but also promotes trust and transparency between parties. By using plain language, avoiding complex legal jargon, and logically organizing information, clients can quickly grasp the terms and conditions outlined in the contract.
If a company as large and complex as GE, doing business with other Fortune 500 companies, finds value and security in using plain language, it stands to reason that smaller businesses without those resources would benefit even more.
Good Enough for Million Dollar Contracts?
The benefits of plain language contracts are not just theoretical. They have been put into practice by none other than General Electric (GE), a Fortune 500 company with a massive legal team and resources. GE has adopted plain language contracts for their GE Digital Solutions division, GE Healthcare, and GE Additive, with other divisions following suit.
If a company as large and complex as GE, doing business with other Fortune 500 companies, finds value and security in using plain language, it stands to reason that smaller businesses without those resources would benefit even more.
An article from the Harvard Business Review titled “The Case for Plain Language Contracts” further underscores the problems with traditional contracts that are unclear to everyone but lawyers and generate too many disputes between parties. The solution? Radically shorter “plain-language” contracts that a high schooler could understand.
As an example, the indemnification section of our own master services agreement went from 944 words, almost a page and a half, to just 36: “If an arbitrator finds that this contract was breached and losses were suffered because of that breach, the breaching party will compensate the non-breaching party for such losses or provide the remedies specified in Section 8.”
At Mach4 Design, we believe in continuous improvement and innovation. We are confident that this change will benefit us and our clients. It’s a win-win situation. So, here’s to clear communication, stronger relationships, and efficient business practices. Here’s to plain language contracts!
