What is Business Contract Drafting?
A business contract is a legal agreement that includes information about how parties can work together successfully. Since it protects business reputation and provides clarity to enhance professional relationships, it must be clear and easy for both parties to understand.
Read the rest of this article to learn the best strategies for drafting a business contract, such as what key terms to include in it and additional tips to consider, as well as why you should hire a qualified lawyer to help you with the business contract drafting process.
What are Key Terms to Include in a Business Contract?
If you need to draft a business contract, you should include essential terms in it, such as the following:
- Parties. Both parties’ legal names and contact details must be included.
- Term and termination. The agreement term must be defined as well as how either party can end the contract.
- Work scope. This outlines all goods and/or services that will be provided.
- Payments. How deliverables will be paid, including late-payment penalties, must be specified to prevent payment delays.
- Confidentiality. To protect business information such as trade secrets, the agreement should specify security measures that will be used.
- Dispute resolution. If conflict arises between parties, there should be clarity about how to resolve it, such as via mediation or arbitration.
- Indemnification. Should there be damages suffered, the agreement should include information about which party will have to compensate the other.
- Non-compete. This clause might be included to prevent one party from creating a conflict of interest by starting a business that competes with the other party’s company.
What are Tips for Drafting a Business Contract?
To make your business contract comprehensive and avoid missing any clauses that can put you at risk of legal or financial consequences, you should consider the following tips when drafting it.
Be Detailed About Payment
All payment terms must be clear so that there’s no risk of disputes. You want to outline details, such as milestone payments during specific projects or when scheduled payments will occur if you require ongoing services.
Include Accurate Party Details
Check all details, such as the parties’ legal names and contact details. This will help you to clearly define who is responsible for what activities under the agreement. It’s easier to correct details prior to signing than if you wait for an issue to arise in the future.
Consider the Legal Dispute Location
If you’re working with a company that is in a different region to yours, understand that you’ll have to consider what jurisdiction’s laws apply in case of legal disputes. You should know what’s legally required in both locations to protect yourself.
Explain IP and Confidentiality
Depending on your working relationship, you might need to include an intellectual property (IP) clause to state which party owns the IP that’s created during the agreement term.
You should also specify confidentiality rules so that you have control over sensitive information that’s shared with the other party, such as trade secrets and client lists.
Discuss Contract Breaches
You should always consider the worst that can happen, such as a contract violation. Your agreement must include what conditions constitute a breach, such as not paying on time or not fulfilling agreed-on duties. The agreement should also mention how the breach can be remedied and within what specific timeframe.
How Does a Lawyer Help You Draft a Business Contract?
If you need to draft a business contract, you might wonder how to navigate the process. Luckily, you can hire a lawyer to help you. Here’s what a lawyer will do during the drafting process:
- They’ll evaluate your business model so the agreement is aligned with your needs and goals.
- They’ll consider worst-case scenarios to help you identify your risks and make provisions to help you mitigate them.
- They’ll write every clause so that it’s clear and specific, without any ambiguous wording that could lead to misinterpretation.
- They’ll align every clause in the agreement with the relevant laws and regulations so that it’s legally valid and enforceable.
- They’ll conduct activities beyond the drafting process, such as negotiating with the other party on your behalf should you wish to include additional terms.
- They’ll help you protect your IP and data by securing the agreement with the right provisions.
Where to Find a Lawyer for Business Contract Drafting
If you want to hire a business lawyer to help you draft a business contract, you don’t have to struggle to find the best one for your legal requirements. On online legal platforms, you can access a network of qualified lawyers who are experienced to help you.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers in your location. All lawyers on the platform have years of experience in contract drafting and review.
If you’d like to request one of ContractsCounsel’s lawyers to draft your business contract, here are the easy steps to follow:
- Go to the ContractsCounsel marketplace.
- Post your project, or request, for free. Include a few details to help you find the most suitable lawyer, such as the type of business contract you need.
- Wait for lawyer bids. Receive multiple bids from lawyers directly on the platform who have the experience to help you. Instead of having to search for the right lawyer, lawyers will come to you.
- Review the lawyers’ profiles. Take some time to go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to draft your business contract for a flat fee.
