Contracts: practical guides and steps

Contracts govern every relationship a business has with its customers, suppliers and partners. A clear document prevents most disputes. This page helps self-employed people and SME managers choose, draft and monitor the right paperwork.

What Belgian contract law says

Since 2023, Book 5 of the Civil Code governs obligations. It replaces rules that dated back to 1804. The text notably confirms freedom of contract and good faith. It also frames the negotiation stage before signature.

In addition, the Code of Economic Law targets unfair terms between businesses. A clause that creates a manifest imbalance can thus lose all effect. You can read the official texts free of charge on the Belgian Official Gazette website.

Essential contracts for a business

A handful of documents cover most of the risks. Still, every activity needs to adapt the list.

• General terms and conditions, which set prices, deadlines and liability.
• A service agreement, for every significant assignment.
• A non-disclosure agreement, before any sensitive negotiation.
• A shareholders' agreement, which supplements the articles of association.
• Insurance policies, which transfer part of the risk.

To build this foundation, read our selection of essential commercial contracts. If you share ownership, also prepare a robust shareholders' agreement. Finally, compare cover options in our article on professional insurance for the self-employed.

Points to check before signing

A signature often commits you to more than you think. First, reread the liability and termination clauses. Then check who may represent the company. Indeed, the published articles state the signing powers. Also keep a written record of every change. A verbal agreement remains valid but proves hard to establish. A simple confirmation email often does the job. Contracts that live only in memory rarely survive a dispute.

Also think about the personal data you exchange. With a provider that handles your files, a data processing agreement often becomes necessary. Our file on GDPR compliance for businesses covers this point. Likewise, a logo or trade name deserves an intellectual property clause. Protect it first through trademark registration in the Benelux.

When contracts go wrong

Even well drafted contracts cannot prevent every conflict. A customer may stop paying and then go bankrupt. In that case, lodge your claim within the deadline set by the judgment. Our article on bankruptcy and its consequences explains this procedure.

A struggling business may also apply for judicial reorganisation. Its ongoing contracts then continue, with some exceptions. Discover how in our file on judicial reorganisation. To fund a dispute, legal protection insurance covers part of the costs. Finally, when you sell, key contracts weigh directly on the price. A buyer always reviews them during due diligence. Up-to-date contracts therefore also ease the sale of your business.