Contracts

The demand for best practice in running sport and recreation clubs is greater than ever. Legal contracts are one area where clubs can be seen to be moving towards a professional business-like operation.

What is a contract?

A contract is simply an agreement that is legally enforceable and generally involves an exchange of promises, whether it’s money, services or rights.

A contract can be spoken or written. It can even be implied by the conduct or actions of the parties such as providing a safe environment for employees or paying reasonable fees.

Reasons for a contract

Clubs may enter into a contract for a variety of reasons that include:

• employment contracts with coaches, officials and administrators
  
• sponsorship agreements
  
• leasing premises
  
• purchasing equipment
  
• government funding
  
• selling membership
  
• supply contracts for goods or services
  
• internet provider agreements
  
• ground hire arrangements
  
• hiring referees
  
• fundraising licenses
  
• liquor licenses
  
• insurance contracts
  
• confidentiality agreements with board/committee members
  
• broadcast licence agreements
  
• merchandising licence agreements
  
• event promotion agreements
  
• event management agreements
  
• copyright assignment agreements
  
• spectator ticket sales.

Contract tips

• Get it in writing
  Avoid disputes and misunderstandings by documenting the agreement at the start. Make sure you include everything in the document that you’ve agreed to do.
• Get legal advice
  If there are any uncertainties within a contract, seek independent legal advice before you sign.
• Read every word
  Take your time and read the contract carefully. Question anything that you’re unsure of.
• Keep a copy
  Whether your agreement is as informal as an email or as detailed as a written contract, keep a record and review regularly what you have agreed upon.

Use the contract checklist as a helpful guide when negotiating contracts.

Six contract essentials

These are necessary to form a legally binding contract.

1. Offer and acceptance	A proposal or undertaking to do something by someone and an acceptance by the other.
2. Consideration	The value attached to the agreement - can be money, services, property, rights etc.
3. Intentions to create legal relations	Understanding that both parties involved in a commerce or business matter plan to be legally bound.
4. Legal capacity of parties	Both parties must be legally able to enter into the contract. Those under 18 years or with an unsound mind may lack the legal capacity.
5. Legal purpose	Courts will not enforce a contract for an illegal purpose.
6. Genuine consent	Consent must be given freely and without mistake about the nature of the contract.

 

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