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Contracts are part of everyday operations for many not-for-profits. It’s important to know what issues to look out for when signing on the dotted line.
Although your organisation may not have much power to negotiate when signing contracts, especially standard form contracts, there are some key principles to consider. If a contract is too risky, your organisation can always choose not to sign.
If your organisation is not incorporated, an individual will normally be required to sign a contract of behalf of the unincorproated group. This can mean that the individual is personally liable for rights and obligations under the contract. If this has become an issue, your group should consider incorporating. For more information go to our page on The Incorporation Decision.
For more detailed guidance on contracts, see our fact sheet on Understanding Contracts below. This guide includes information on:
- general principles of contract law
- reviewing a contract and approval processes for contracts, and
- specific types of contracts.