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You begin the contract by naming the parties in the agreement. This may seem obvious, but attorney Mark Cohen of Colorado writes in his article Ten Things to Consider Before Signing a Contract that a common error is to use the name of a person representing an entity rather than the name of the entity.
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.