Customer Contract Cost

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What does a customer contract cost? If you provide a service and need a contract for your customers, you may want to know how much this contract will cost. Let’s explore this question and review some general information about customer contracts.

How Much Does a Customer Contract Cost?

A customer contract, often called a services agreement, is a legally binding agreement between a party who provides a service or item and the customer who consumes the service or item. For example, you may not realize that any time you purchase an item from a store, you are essentially entering into a contract with the owner of the store.

Like any other contract, a customer contract must have the essential elements of a contract to be legally binding. The fundamental elements are:

  • An offer
  • Acceptance
  • Consideration

In the example of buying an item at the store, the offer is the amount of money for which the item is listed. Acceptance happens when the customer agrees to buy the item, and consideration is the money exchanged for the item.

Some customer contracts are verbal or implied by conduct like the above example. In other situations, a customer contract is in the form of a written contract that both parties must sign.

If you need a written customer contract, you may consider hiring an attorney to draft the contract. An experienced contract attorney will know what needs to be included in a legally binding contract. However, suppose the contract is poorly written or doesn’t contain all the necessary terms. In that case, either party may be vulnerable to damages if a breach of contract occurs.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a customer contract is $581.58.

What’s Included in a Customer Contract

Customer contracts will vary depending on the type of business executing the contract. For example, some customer contracts include the performance of service, while others have the sale of an item.

While customer contracts may vary, they should all include the following basic information:

  • Information about the parties. The legal names of both parties, whether individuals or businesses, should be included at the beginning of the contract.
  • The date. The date will record when the contract was executed. Suppose the contract doesn’t go into effect immediately. In that case, the date that you wish it to take effect should also be included.
  • The scope. The scope of a contract is a statement that describes what is being agreed upon. For example, a landscaping company may agree to mow a customer’s yard once a week.
  • Terms of payment. The contract must include the cost of goods or services being exchanged and how the payment is made. In the landscaping example, the contract may state that the company will charge $20 a week for mowing services. The company will invoice the customer every month.
  • Expiration date. If the contract expires, the date needs to be included.
  • Termination. It is a good idea to include a clause about how the contract can be terminated and each party’s responsibilities in the event of early termination.
  • Signatures. Both parties should sign the contract to make it legally binding.

Types of Customer Contracts

There are several types of consumer contracts because they vary depending on the industry. When we think of these types of contracts, three types generally come to mind:

  • Contract to supply services (a landscaping company mowing the yard)
  • Contract to supply goods (a liquor vendor agreeing to supply a bar)
  • Contract to provide digital content (a TV streaming service)

You can also have a customer contract that combines these types of agreements.

Customer Contract Drafting

Customer contracts can be complicated documents. If you need this type of contract drafted, it is recommended that you consult with an experienced contract attorney.

An attorney will know the contract laws in your state and be able to create a document customized to your business that protects both you and your customers.

Customer Contract Review

If you have been asked to sign a customer contract, you should know what you agree to and what rights you may be forfeiting. Before signing any contract, you should have it reviewed by a knowledgeable attorney.

An experienced contract lawyer can review the terms of your customer contract and make sure that you are not signing away important legal rights. Your lawyer will be able to explain the contract to you, so you are fully aware of all your obligations.

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Customer Contract Drafting Cost

If you hire a lawyer to draft a customer contract, it will come with costs. Your lawyer may charge a consultation fee, in addition to the time it takes to prepare the contract. You may also have to pay for any communications or follow-up meetings with your attorney after the contract is finished.

ContractsCounsel’s marketplace data shows the customer contract drafting costs to be $586.67 across all states and industries.

Customer Contract Review Cost

If you choose to draft your own agreement or you are faced with signing a customer contract, you can hire a lawyer just to review the contract. You will still incur legal fees, but they will typically be less. In addition, reviewing a document should take less time and work than drafting a document from scratch.

ContractsCounsel’s marketplace data shows the average customer contract review costs to be $562.50 across all states and industries.

How Do Lawyers Charge for a Customer Contract?

Customer contract lawyers can charge for their legal services in several ways. Hourly rates and flat fee rates are two common fee structures often used.

Hourly Rates for Customer Contracts

Contract lawyers can use an hourly rate to bill clients. They will keep track of their time working on the case then invoice clients for hours, usually after the case or periodically throughout the case.

This fee structure ensures that the lawyer is paid for their time if the case takes longer than initially estimated.

ContractsCounsel’s marketplace data shows the average hourly rate for a customer contract lawyer ranges from $250 - $350 per hour.

Flat Fee Rates for Customer Contracts

Flat fee billing structures are frequently used in drafting projects like a customer contract. In this fee structure, lawyers provide their client a flat fee quote for legal services. A flat fee rate structure benefits that the client knows the total legal expenses before agreeing to hire the lawyer.

A client must ask the attorney what is covered in the flat rate. Sometimes, extra meetings, communications, or revisions could cost more.

ContractsCounsel’s marketplace data shows that the average flat fee rate for a customer contract costs $581.58.

Get Help with a Customer Contract

Do you need help with a customer contract project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

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