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When you have a business where customers contract you to perform a service, you need a legally binding agreement to spell out of the terms and conditions of the business relationship. According to "All Business," a business agreement serves as a guide that all parties to the agreement must follow. Generally, one party draws up the agreement and both parties sign the it as an acknowledgment of the terms and conditions it contains.

Write a termination clause that explains the steps that one or both parties need to take in order to terminate the contract. For example, you may say that either party can terminate the agreement with a written 15-day prior notice to the other party. Also, include payment terms for any work completed to date that the customer is responsible for paying for this portion of the work. Write a dispute clause to establish the handling of a dispute between the two parties. For example, arbitration is one method the parties can agree to in the case where a dispute arises between them.

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