Myth of the Perfect 2-Page Agreement

MYTH OF THE PERFECT 2-PAGE AGREEMENT

In this technological age, you can find absolutely anything online, including free legal agreements.

Having been in the corporate practice for more than 20 years and having drafted and reviewed countless contracts, we know that many of Singapore’s Small & Medium Enterprises have turned to the internet for self-help measures to deal with the nitty-gritty day-to-day aspects of starting, running, and protecting their business as a cost-saving measure,

Like many business owners, you have probably used or are using an agreement downloaded from the internet.

Or perhaps you were a little more diligent and had searched for a few similar legal agreements and combined them all into one agreement.

Many business owners come to us, flaunting their “simple 2-page but near-perfect” agreements and requesting minor “touch-ups”.

We often had to break the bad news to these clients that their agreements required a significant overhaul as they did not provide for many common situations.

One of our clients, a training consultant, recently came to us with his “perfect” 2-page agreement. He said he had been using his consultant agreement for the last 6 years without problems. But recently, he learned that the company he had worked with took his materials and circulated them to all its staff members.

A quick review of his consultant agreement showed that it lacked terms relating to the use of his materials, particularly the right to compensation for the unlawful use of his materials.

Our client told us that, being a “one-man show,” he didn’t want to “scare off” his clients with a 20-page legal agreement.

Having learnt a valuable lesson, our client’s consultant agreement is now 8 pages long.

Companies in different industries have different specific needs. Very often, the various issues faced by businesses require a variety of specific legal wordings. If you feel that these issues are important to you, make sure your agreements are reviewed by a lawyer. Speak to us over video consultation via Lawyer Anywhere.

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Susan Tan

Senior Legal Executive

Qualifications:

With more than 10 years of experience in the financial industry, Susan Tan, who joined us from one of the leading corporate and investment banks in Singapore, provides invaluable expertise and knowledge in corporate secretarial.

She is conversant and familiar with the local regulations and requirements for business entities in Singapore.

As a member of our team, Susan is responsible for maintaining and updating the Company’s statutory registers and records, filing all necessary documents and forms with the Accounting & Corporate Regulatory Authority (ACRA), Ad-hoc assignments such as allotment and transfer of shares, amendment of Company’s Constitution and submission of Annual Return to ACRA.

Apart from corporate secretarial work, Susan has considerable experience and expertise in compliance advisory matters, making her a valuable member of our firm.