What You Need To Know About Writing A Contract
Writing a contract doesn’t necessarily mean you need to have a legal degree. Rather, all you need is a firm knowledge on how to cover all your bases so you and your business aren’t taken advantage of. In this article, we’ll take a firm look at what is an essential part of a written contract and what are some of the important clauses that each contract must contain. A legally binding contract is a contract between you and your customer, so it’s important you take the proper measures to secure your negotiations and enact specific guidelines.
So let’s take a look at why a contract is necessary and what needs to be included.
Why Do I Need a Contract?
Whether you call it a treaty, an agreement, or a proposal, you need to have a mutual understanding for it to have legal force. A written contract must also contain an agreement between the parties to make it enforceable. Once you know the essential elements of your contract, your contract should be valid and enforceable, no matter who you are contracting with.
It’s always a good business practice to write business agreements, but why does anyone bother to have a written contract? Oral contracts can be difficult or impossible to prove, but it is always a good idea to put a binding agreement in writing. It is not legally required, but always ask your lawyer (if you have one) if that is unclear. An oral agreement can be a legal agreement, but it is a lot more difficult to prove in court.
Do I have to Write the Contract Myself?
Not necessarily, but, if a contract is written by both parties, you must make sure you understand every word before signing the contract. A business contract must be signed in writing so that you can read, understand and sign the terms and conditions.
What Do I Need to Know About Contracts?
An oral contract can be as legally binding as a formally written contract if the correct procedures are followed. A binding agreement is concluded when all the essential elements are in place and this can be better demonstrated in a written contract. If there is something written, it must be in the form of a formal agreement, not in the form of an oral agreement as in an oral contract, but if there is no essential element, it cannot be formed in any form, even if it is written down. An oral agreement can only be legally binding through the terms and conditions of the contract and the formal terms and conditions, which can be better substantiated by a written contract.
However, it is important to sign and sign the tacit contract in writing so that you can enforce it in court. Without a signature your contract will not hold up in court so it’s important that before you start any work, or begin a project, that you have a signature in writing or digitally.
An experienced contract lawyer can be of great help when it comes to the written requirements of contract law. Remember, if you have any doubts about your contract, you can always consult a contract attorney for legal advice and state law. A lawyer who can help you determine what legal obligations you have under the law and what conditions exist for a written contract to be enforceable in your home state. Your lawyer also knows the law of your state, so that you can enforce it against the contract if in doubt, if you ever have to challenge a breach of the contract in court.
Writing a legal contract will take a while, but if you write it a few times, you get used to it and get more practice. You should always try to obtain your contract and your employee’s consent to this contract in writing. If you receive a contract but do not understand the terms, you should contact a lawyer before signing the contract or agreement. Your in-book contract adviser will almost certainly want to look at the contracts and you should request one as soon as possible, as it can take up to a week for such a contract to fit together.
If you don’t want to take the time to write a contract, you can always look into a software that can help you speed up the process. One of the better contract softwares out there is ArcELM, or Electronic Letter Management, where you can easily build contracts from customizable templates, save excerpts from previous contracts, and email contracts to be signed by your customers. You can learn more about it here.
You can also read more about how document creation software simplifies the contract process by going here.
Now You Know!
Now that you are familiar with the legal terms and process of drafting the contract, it is also good to have the contract reviewed by a lawyer before it becomes final. Don’t forget that even though contracts might take time to write, you don’t want to rush them or else you can find yourself agreeing to something you weren’t sure about or you might not cover all your bases and land yourself in legal trouble. Be patient and it will pay off!