5 Contract Clauses That Could Save Your Business
- Delta Law
- Apr 10
- 2 min read
Contracts are the backbone of every business relationship—whether you're hiring a freelancer, offering a service, or renting commercial space. But not all contracts are created equal. In fact, the absence of a few critical clauses can expose your business to lawsuits, payment disputes, and reputational damage.
Here are 5 must-have clauses every Ontario business should include in its contracts—and how a business lawyer ensures they're enforceable and tailored to your unique operations.
1. 🛑 Termination Clause
A contract without a clear termination clause is like a relationship with no breakup plan. If things go south, you need a clean way out.
Why It Matters: Prevents disputes about how and when a contract can end. Ensures you're not stuck indefinitely if the relationship isn't working.
How a Lawyer Helps:
Drafts terms for both parties to exit the contract fairly.
Clarifies termination for cause (e.g., breach) vs. without cause.
Includes reasonable notice periods and refund obligations.
2. ⚖️ Limitation of Liability
You don’t want to be sued for losses you didn’t cause—or losses that exceed what the client paid you.
Why It Matters: Limits the financial exposure your business faces in a dispute. Can protect you from consequential damages (like lost profits).
How a Lawyer Helps:
Crafts liability caps in line with your services and industry norms.
Excludes indirect damages.
Includes enforceable language under Ontario law.
3. 💸 Payment Terms & Late Fees
Unclear payment terms are one of the top reasons small businesses experience cash flow issues.
Why It Matters: Sets expectations for when and how you get paid. Gives you a legal basis to charge late fees or pursue collections.
How a Lawyer Helps:
Defines due dates, late penalties, interest, and refund policies.
Ensures terms are enforceable and not ambiguous.
Protects you from clients delaying or withholding payment unfairly.
4. 🔐 Confidentiality & Non-Disclosure
Even if your business isn’t dealing in trade secrets, you still need to protect sensitive info.
Why It Matters: Builds client trust, protects your business methods, and reduces the risk of copied ideas.
How a Lawyer Helps:
Drafts clear confidentiality terms, duration of obligations, and penalties for breaches.
Helps prevent employee or contractor leaks.
Tailors clauses to your business type (e.g., therapy, tech, construction).
5. 🧭 Dispute Resolution
What happens if there’s a disagreement? Going to court shouldn’t be your only option.
Why It Matters: Helps resolve issues faster and at lower cost. Encourages informal resolution before legal action.
How a Lawyer Helps:
Recommends arbitration, mediation, or escalation procedures.
Avoids jurisdictional issues by specifying governing law (e.g., Ontario).
Prepares you in case court is the only route.
👩🏻⚖️ How Delta Law Can Help
We don’t just draft contracts—we build shields around your business. At Delta Law, we:
Review and revise existing agreements to plug legal holes
Draft new contracts from scratch that reflect your business model
Offer affordable flat-rate packages for service agreements, leases, partnership terms, and more
Let us help you make sure your contracts don’t just look professional—but actually protect you.
Get in touch today for a consultation on your contracts or to request a custom quote.
📞 Call 905-622-4931
