Are you looking to create an enforceable, plain-English contract? Then you have come to the right place! Here, we are taking you through some of our tops that will help you to create solid contracts.
Create A Written Contract
Let’s start off with the basics. While and oral agreements can be legal in some situations, this is not something that is easy to prove in court and so this is why it is so important that you have your contract in writing. Having a contract in writing is less risky and it will spell out the rights and obligations of both parties so there cannot be any disagreement. If you need help in writing a contract, you can contact Devant Contract Negotiation for help and advice.
Keep It Simple
When you are trying to create a contract, it is best to keep things as simple as possible. This means that both parties will understand the contract and there is less likely for confusion to happen.
Include the Details
While your contract should be simple and easy to read, this does not mean that you should not spell out all of the details. A contract must let both parties know their rights and obligations in clear detail and nothing can be left to interpretation. Furthermore, remember that if you discuss and agree on something verbally, this should be added into the contract which you can do with a short written amendment.
Be Clear on Payment Obligations
When you are creating a contract, you should always be clear about who pays whom and the time frame of when payments have to be made. For the most part, most contracts are disputed over monetary reasons and so this section in your contract is of the utmost importance and you have to be 100% sure that it is correct. For example, if payment is only going to be made once the work has been completed, then this should be detailed in the document along with the dates and requirements of this transaction. You may also want to put in there what payment method is to be used too.
Be Clear on When the Contract Can Be Terminated
In a contract, it should also be detailed what are the circumstances in which the contract could be terminated. This could be something such as one party missing their deadlines. You should always have the right to terminate a contract should the other party legally breach the contract.
When you are creating a contract between yourself and another business, in doing this they will gain sensitive knowledge about your business and this is something that you need to ensure is protected in the contract. There should be mutual agreements from both sides that all business information will remain completely confidential.
These are our top tips that you should be implementing when drafting up a contract or agreement with another business.