Free Contract Template Insights
5 Tips for Drafting an Awesome Contract
CHAPTER 6
Without a written contract, the nuts and bolts of the agreement can get lost.
Contracts are an essential part of small businesses. They establish contractual relationships spelling out each party’s obligations. Without a written contract, the nuts and bolts of the agreement can get lost. Relying on verbal agreements can lead to expensive and unnecessary litigation.
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ApproveMe provides access to hundreds of contract templates, service agreements, and legal advice and tips about the documents provided as well. They are a universal guide to help you customize your very own business agreement. Because every contract is different, you will need to tailor yours down to all of the specifics relating to the transaction. States vary on what can and cannot be included in a contract. Consulting with an attorney is an excellent idea to ensure you are in compliance with your local and state laws.
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All of these contracts and agreements are downloadable as Microsoft Word documents and can be signed and exported as PDF documents as well.
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5 Tips for Drafting an Awesome Contract
Drafting contracts may seem like an impossible task. A contract is essential, so it is worth the time it takes to get all of your ducks in a row. To ensure you are not missing anything pursuant to your state’s laws, it is important to consult with an attorney to review your contract. An experienced attorney can ensure all of the proper elements of an enforceable contract are met. Our templates are comprehensive and help you sort through all of the details of the transaction.
- Know the Parties – Before drafting a contract, be sure you can properly identify the parties to the agreement. If it is an entity, list the registered name of the entity. If it is an individual, list their full legal name. This is important because if a party is not named in a contract, they may not be legally bound by it.
- Scope of Work – This is one of the most crucial parts of your contract. Tailor it to your specific needs and include specific details of the agreement and work to be performed.
- Payment Details – This speaks to consideration. Include the cost, whether it be a flat fee or hourly rate. This is also a good section to list any expenses and who will be responsible for paying expenses and the process for reimbursement if applicable. Also, include how the contracting party will get paid and how often. This section should consist of due dates and invoicing procedures.
- Dispute Resolution – Every business contract should include a dispute resolution process. It is hard to imagine any sort of issue that may arise, but it does happen. There are different forms of dispute resolution. Usually, the contract will require the parties to engage in a good faith effort to resolve the issue before continuing to legal action. Parties may also agree to include a mediation or arbitration clause. The parties should discuss the agreed-upon dispute method, and both parties should have a clear understanding of what each resolution entails.
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