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Contract Versus Policies |
by Tom Copeland
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- There is a difference between what belongs in a contract and policies.
- A contract should contain four elements:
- Names of parents
- Terms that are enforceable in court
- Time the provider is open (holidays, vacations, etc.)
- Money that the parent owes for services
- How the contract will end
- Signatures of both parties
- Policies should contain everything else about “how” the business is run:
- Discipline policy
- When and how often meals are served
- Curriculum offered
- Sick policy
- Etc.
- Contract terms can be enforceable in court but policies cannot. A change to a contract must be in writing or it’s not enforceable. A provider can change her policies at will.
- A contract should be a separate document from the policies.
- A verbal contract is enforceable in court but it would be extremely difficult to enforce it without another witness.
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This handout was produced by Think Small (www.thinksmall.org).
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