Today . . . I am thinking about this question that came in from one
of our
women entrepreneur readers. Joan (not her real name) just signed up for coaching services
with a new coach, and her coach sent her a Letter of Agreement to sign.
Our reader wonders about this practice, and wanted to know the
difference between an agreement and a contract. Good question!
If you have a small business question that you'd like for me to answer, let me know.
Q:
"My coach just sent me a Letter of Agreement to sign before coaching
services begin. Is this standard practice? What's the difference
between a Letter of Agreement and a Contract?"
A:
Yes, a Letter of Agreement is standard practice in the
coaching/mentoring industry. It is designed to lay the groundwork for a
productive working relationship, and sets the tone for your upcoming
work together.
The biggest difference between an agreement and a contact is that the courts will enforce a contract, whereas an agreement is just an arrangement between the parties. Sometimes, however, an agreement is included in a contract.
Here's the difference:
• A contract, on the other hand, comes after there is an offer and an agreement. For example, a contract is signed between a publisher and a writer - after an offer has been accepted and terms agreed upon.
For most coaching/mentor relationships there is just an offer and an agreement. No contract will follow.
Disclaimer: I am neither an attorney nor an accountant and am not qualified to give you financial or legal advice. If you are starting up a business, it is important for you to contact qualified law and tax experts and seek their advice.
If you have a small business question
that you'd like for me to answer, let me know.
Susan L. Reid
Inner Samurai Business Expert
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