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If you own a yoga business in New Zealand, it is more than likely you have used a contract in your daily dealings. A contract is a valuable tool that helps you negotiate with other entities. This is because they are legally binding and allow for compensation if either party refuses to comply with the terms. One popular contract is a client agreement. A client agreement is a contract that you enter into with your customer. There are several ways this can be formed, whether it be written, verbal or implied. This article will explain what a client agreement is and how to structure it for a yoga business.

What Is a Client Agreement?

When people think of a contract, they will usually turn their minds to a written agreement. However, contracts can also be verbal, and people enter into them every day. A client agreement outlines the conditions on which you acquire goods and services. Many businesses will include their terms of services in a client agreement, and this will be displayed as soon as you walk into the business. You then enter into a contract once you make a transaction with the business.

For example, a yoga business might have its terms displayed on its website. Then, when you book a class, you enter into a contract with that business on the terms provided.

Types of Contracts

Written

The primary type of contract that most businesses will use is a written contract. A written client agreement will contain what the service is and how much it will cost. Nowadays, most written contracts will be online, and you will agree to the contract once you book a class on their website. The written client agreement is the most foolproof, and both parties clearly understand what they are entering into, so there is less room for a dispute between the two parties.

Verbal 

Another type of agreement that businesses and consumers will enter into is a verbal agreement. This means that the business and customer orally agree to do something without the need for anything to be written down. These are legally enforceable if both parties enter for them to be binding. However, verbal agreements can lead to disputes as there is no recorded evidence of what was agreed to between the parties. Nevertheless, most businesses will utilise verbal agreements as they are easy to enter into and don’t require a formal process.

Implied

An implied agreement is a contract that is agreed to by the conduct of the parties. People enter into this type of contract wherever they buy something. For example, a person picking something up off the shelf and taking it to the counter is an implied contract as both parties agree to transfer the ownership of the item to the consumer for a given fee. Like verbal agreements, implied contracts can cause disputes. This is why businesses will display their terms on the counter so that a written contract backs up their implied agreements.

What Terms Should I Include in a Client Agreement?

Now that you’ve decided on what type of contract to use, there are several terms that you should include in your contract to stay protected.

Nature of the Service

Your client agreement needs to state what you are providing to your customer. For example, you need to explain what the class is and what the class will provide for a yoga business. It should also state how long the class runs for and how membership works at your business. 

Cancellations

Client agreements should also include a cancellation clause. There should be a clause as to how long before the class you can cancel without incurring a fee. This is to make sure people turn up for your class if they have booked. You could also include a clause that allows your consumers to be refunded if they are not happy with the service. 

Risk Arrangements

Risk arrangement clauses are there for customers to appreciate an element of risk involved in the yoga class. It should explain whether any potential risk factors, such as being pregnant, could aggravate an injury or cause any other issues.

Key Takeaways

There are several ways to structure a client agreement for your yoga business, which includes the form that it takes. Most businesses will either use written or implied client agreements that clearly state the obligations for both parties. A client agreement needs to contain specific terms in case there is a dispute. For a yoga business, this means explaining the service and any risk factors customers should be aware of. Furthermore, your client agreement should also contain the process for cancellations and refunds. 

If you need legal assistance creating a client agreement for your yoga business, LegalVision’s experienced contract lawyers can help. Call us today on 0800 005 570 or fill out the form on this page.

Frequently Asked Questions

Is it best to have a written client agreement?

Even if your client agreement is agreed verbally, you should have a list of terms that the agreement is based on. This is to ensure both parties know what the client agreement means for them.

Can I charge a fee for cancellation?

Yes, you can as long as this fee is reasonable and is similar to any loss incurred by the cancellation.

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