A well-written contract can get your employment relationship off to a good start. The contract should give you a clear understanding of what services your employer expects you to provide. It also should clearly state your compensation, including potential bonuses and benefits package. This clarity avoids misunderstandings that can sour the relationship between you and your employer. Because risk is inherent in any business venture, it is impossible for a contract to eliminate this element. However, a good contract will fairly allocate risk between the parties.

Need help understanding contracts?  Check out EMRA's book, Contract Issues!