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Using a Contract to Reduce Misunderstandings |
by Tom Copeland
Good communication is key in any relationship. It is particularly important when dealing with parents in your child care business. Providing clear information is important whether you are discussing what activities the children participated in that day or the rates that you charge.
When establishing a contract, terms can be established either verbally or in writing. The biggest disadvantage of a verbal contract is that the terms can be misunderstood. The legal disadvantages of a verbal contract are that it can terminated immediately by either party and that all the parties must be in complete agreement at all times. These disadvantages make a verbal contract very difficult to work with and enforce.
When the terms of the contract are written, the chances of misunderstanding are much less. Your expectations can be clearly written, such as pick-up times. A written contract can also explain any consequences of violating any terms, such as late fees. This creates a document that can then be referred to if there are questions regarding any of the terms. Any change to a written contract must be in writing. You can add an addendum to the contract or write out a new one. In either case make sure the parent signs it. If a change to your written contract is not put in writing, it can't be enforced.
A written contract also gives you the opportunity to discuss how you run your child care business. This discussion can reduce misunderstandings as you can answer any questions or discuss any concerns about the terms immediately with the parents. The combination of the discussion and the written document will help reduce misunderstandings between you and parents.
This handout was produced by Think Small (www.thinksmall.org).
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