Verbal agreements only have as much weight as the parties involved. You should always put your contracts in print due to the risks involved in operating a business. When corporate issues develop and the contract is in doubt, you’ll be happy you took this step. This article will explain everything you need to know about drafting a business contract agreement.
What Exactly Is Contract Drafting?
It would be helpful to understand a contract to understand the idea of contract writing completely. Generally speaking, a contract refers to a legally binding agreement between two parties that recognizes the rights and obligations that belong to the arrangement. Verbal agreements and written agreements can both be used to construct contracts. However, this mainly applies to binding agreements for contract writing.
Writing down an agreement’s terms and conditions is known as contract drafting. Even before the contract is established, the parties may go through rough drafts and discussions. A business contract attorney will write an agreement crystal clear, precise, and as true to the parties’ objectives as possible is the purpose of contract drafting.
Conditions Of A Valid Contract
A company’s success will depend on its contracts. Well-written contracts can safeguard your company’s rights and provide for eventualities if things don’t turn out as planned. To not make mistakes like these, you must use reputed contract drafting services.
A legal contract must meet the following conditions:
|Mutual Agreement||Simply put, all parties must agree to the terms of the agreement.|
|Offer and Acceptance||When one party offers some act in exchange for the other party acting in a certain way and the other party accepts.|
|Consideration||Refers to the benefit that both parties receive by acting under the contract. One-sided contracts can be found void.|
|Capacity and Legality||The parties entering in the agreement must be of sound mind and age of majority. The contract also can’t be to engage in unlawful acts.|
Drafting A Business Contract
Drafting a contract is not a simple process. Although getting a generic template online could be an easier option, we strongly advise against doing so regularly for your organization. A contract is only as strong as its wording; thus, a free online form won’t meet your specific requirements. It is a good idea to hire a business contract attorney to take care of these matters.
Step 1: Choose the right contract drafting attorney because the wrong one won’t consider your transaction’s specific needs.
Step 2: At the top, provide the names, addresses, and dates of the parties involved.
Step 3: Draft a statement confirming that both parties have read and agreed to the contract’s terms and conditions.
Step 4: Create a list of your commitments to the other side and the services, goods, and other things you will offer them.
Step 5: Write a paragraph outlining the terms under which you will accept the other side’s offer to pay you for your goods or services.
Step 6: Include common terms safeguarding your privileges, such as choice of law and confidentiality agreement clauses.
Step 7: Compose a brief explanation of how each party should resolve a disagreement, such as through conventional legal procedure or an alternative conflict resolution method.
Step 8: Add lines for both parties’ signatures and dates.
Step 9: Print or mail your business contract agreement to sign.
If you conflict with the opposing party, poorly written agreements will only worsen things. So instead, make sure to choose the appropriate contract for the conditions at hand and always get the help of a business contract lawyer when more complicated issues come up. This approach is far less expensive than being sued for unintentional terms and conditions in your papers.
Frequent Mistakes Found In The Contract Drafting Process
There are various issues to watch out for while drafting a contract or agreement. It is not a good idea to attempt to draft a contract provision from scratch without the help of a business contract lawyer.
It is preferable to structure any unique terms you must include in your contract after sample clauses found in existing service agreements. You may ensure that the contract is understandable and legal by basing your provisions on these sample clauses.
Furthermore, while preparing your contract, include all necessary information.
A solid contract will contain all important information, regardless of how small it may seem, and will thoroughly outline the rights of all parties. Lack of information might make it difficult for the parties to the contract to know their duties, making it challenging to carry out your agreement completely.
Failure to provide the required information may lead to conflicts between the parties and eventual litigation. If you want assistance with writing service agreements, you can seek the help of a contract drafting attorney.