Business & self-employment
Business contracts & getting paid
Agree the essentials before supplying goods, services or money.
The legal starting point
The Contract Act, 1872 provides the general framework for enforceable agreements, including free consent, competent parties and a lawful purpose and consideration. The transaction may also involve other laws and formalities. A signature, stamp paper or online template alone does not establish that every term is enforceable.
Use a clear written agreement as a practical record. Whether a particular agreement must be written, witnessed, stamped or registered needs checking for that transaction and location.
A practical contract checklist
- Parties: correct legal names, business details and authority of the person signing.
- Work or goods: quantity, specifications, quality, delivery dates, acceptance and revisions.
- Payment: price, currency, deposit, milestones, invoice date, due date, taxes and permitted deductions.
- Changes and cancellation: written approval of changes, refunds, termination and what is owed for completed work.
- Ownership: rights to designs, content, customer information, equipment and confidential material.
- Disputes: applicable law, agreed dispute process and the forum; seek advice before accepting guarantees, broad indemnities or foreign jurisdiction.
For a business partnership, also record contributions, profit/loss sharing, decision-making, drawings, ownership of shared assets and how a partner can leave.
If a client has not paid
- Collect the agreement, order, invoice, delivery evidence, payment history and relevant messages.
- Send a factual written reminder listing the work, amount outstanding and agreed due date.
- Request a payment date or a written explanation of the dispute. Record any payment plan.
- If unresolved, promptly ask a lawyer about the appropriate recovery, mediation or arbitration route and applicable time limits.
“Our invoice [reference] for [work/goods], amount [amount], fell due on [agreed date]. Please confirm payment or explain any disputed item in writing.”
SECP is not a general debt-recovery forum. An ordinary unpaid invoice does not automatically establish criminal fraud. Do not assume a consumer forum can hear every business-to-business dispute.
Official sources & services
General guidance, not individual legal or tax advice. Requirements change and differ by location and activity. Confirm the applicable rules before filing, signing or making a financial commitment.