Contract Drafting
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Verbal agreements are only as effective as the parties using them. Due to the risks associated with running a business, you must put your contracts in writing. You’ll be glad you did if business disputes arise and the relevant contract comes into question.
The best place to start is by learning more about the process of contract drafting. Here’s everything you need to know:
What Is Contract Drafting?
Contract drafting is a form of legal drafting that involves writing contracts and legal documents. Contracts are legally binding documents that contain terms and conditions and other provisions. Poorly drafted contracts may result in unintended legal consequences, whereas well-structured ones can support profitable and secure business activities.
4 Requirements for a Valid Contract
The contracts your company uses will determine its success. Well-written agreements will protect your company’s rights and offer contingencies when things don’t go as expected. However, you must write a valid contract to utilize these benefits.
The four requirements for a valid contract are as follows:
Requirement 1. Offer
An offer is an acknowledgment that one party makes to the other. It signifies their ability and desire to carry out the contractual obligation. Offers usually include products and services being sold to an individual or entity.
Requirement 2. Acceptance
Acceptance is the other party’s acknowledgment that they accept the offer’s terms and conditions . Any changes to the existing request will require new acceptance from the receiving party. If they disapprove of amendments to the original contract, the element of acceptance goes unmet, and thus, rendering the contract invalid.
Requirement 3. Intent
Although a willingness to buy and sell falls under offer and acceptance requirements, both parties must intend to create a legal relationship. The element of intent means that they agree to carry out their legal obligations unless stated otherwise.
Requirement 4. Consideration
The exchange of consideration is the final component of valid contract requirements. Consideration is the exchange of something valuable with another entity to carry out the terms of the contract. Making a payment, trading equipment, and offering employee stock options for products and services are examples of consideration.
A signed contract carries several legal implications. Small businesses and startups should routinely incorporate these requirements into their contracts while seeking legal advice when questions arise.
Learn more about legal drafting .
How To Draft A Business Contract – Step by Step
Contract drafting is no easy task. While it may be tempting to download a boilerplate template online, we caution you to avoid making this a regular business practice. A contract is only as good as the language it contains, and a free online template will not satisfy your unique needs.
Here are the nine steps you should following when drafting a business contract:
- Step 1 . Determine the contract you need since the wrong agreement will not address your transactions’ unique needs.
- Step 2 . List party names, addresses, company names, and dates at the top.
- Step 3 . Create a statement that acknowledges both party’s consent to the terms and conditions contained within the contract.
- Step 4 . Make a list that describes what you give to the other party, such as services, products, and other promises.
- Step 5 . Draft a paragraph about how the other party plans to pay you for your services or products and the terms by which you will accept it.
- Step 6 . Insert standard provisions that protect your rights, such as nondisclosure agreements, choice of law clauses , and more.
- Step 7 . Write a brief statement about how both parties should handle a dispute, such as through traditional civil procedure or alternative dispute resolution
- Step 8 . Add signature and date lines for both parties to sign.
- Step 9 . Print or email your business contract for signing.
Poorly written contracts will result in additional problems should you get into a dispute with the other party. Ensure that you select the proper agreement for the given situation and always get legal advice when more advanced questions arise. This strategy is far cheaper than getting sued over unintended terms and conditions in your documents.
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Common Types of Business Contracts
Business contracts encompass a broad range of agreements. Consequently, it’s challenging for many business owners to know where to begin. The good news is that some arrangements are more common than others and may be the same solution that you need to move forward with your business relationship.
Common types of business contracts that your company can use include the following:
Asset Purchase Agreement
Asset purchase agreements (APAs) are contracts that outline the terms and conditions of purchasing a significant asset. These assets don’t include real estate transactions. The APA will protect your rights when purchasing intangible and tangible goods and services from another person or entity.
Consulting Agreement
Consulting agreements specify the provisions surrounding consultation services. These arrangements contrast sales contracts in that they essentially utilize terms and conditions related to the service industry. Consulting work of any kind should incorporate this type of agreement.
Employment Contract
Employment contracts detail the specifics related to their employment. Commonly used provisions related to compensation, dispute resolution, and confidentiality. These contracts are generally offered to new employees fulfilling key roles and positions within your organization.
Nondisclosure Agreement
Nondisclosure agreements (NDAs) restrict employees from divulging company secrets to external parties. These company secrets usually give the organization a competitive advantage. If the employee violates this covenant, the business owner then has the right to file a claim for damages.
Privacy Policy
Privacy policies let consumers know how you handle their personally identifiable information (PII) collected through websites and applications. These policies inform them of their rights, obligations, and how to opt-out of information-sharing efforts. They are commonly used in the technology sector today, and consumers now expect to see them.
Sales Contract
Sales contacts establish the terms of an asset sale. They lay the foundation for the exchange of consideration between a buyer and seller. Common provisions found in the sales contract include purchase price, delivery dates, and remedies for non-performance.
Service Contract
Service contracts offer a buyer and seller legal protections when engaging in a contractor or vendor relationship. Service contracts are different from employment contracts in that there are special rules surrounding these relationships. Check your local employment laws to determine how they affect your organization and contract drafting efforts.
Terms Of Service
Terms of service (ToS) is a contract found on most applications and websites. The software developer or website owner uses them to set expectations. A ToS will also ensure that you limit your legal and financial liability when people use your software.
Who Provides Contract Drafting Services?
Contract lawyers provide contract drafting services. They are the only professionals who are licensed and insured to offer legal advice. For example, lawyers are not allowed to make any legal mistakes, and if they make one in your contract that causes you damages, you can legally pursue a lawyer for a financial remedy.
Can I Draft My Own Contract?
It’s possible to draft your own contract. However, you should hire contract lawyers to draft your contracts for the same reason most people don’t fix their own cars. They will take on the liability of avoid legal mistakes while ensuring that your agreements are valid and enforceable.
If you need help with contract drafting, post a project in ContractsCounsel’s marketplace and get free bids from lawyers to review and compare. All lawyers in ContractsCounsel’s network have been vetted and include peer reviews for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
How To Get Quotes For Contract Drafting
Meet some of our Contract Drafting Lawyers
Brad T.
William Bradley Thomas, or Brad, is a seasoned attorney in South Carolina, offering expert counsel to both emerging and established businesses and individuals. His specialties encompass alcohol licensure, asset protection, business law, Counsel on Call Concierge Legal Service™, estate planning, NFA firearms trusts, legal research, and document review. Brad’s unique approach is informed by his rich experience and diverse background. Not only is he a devoted father to three daughters (Anna, Kate, and Jessica), but he also served as the assistant Oconee County, South Carolina attorney. A pioneer in the local industry, he co-founded Carolina Bauernhaus Brewery & Winery, the state’s first farmhouse brewery and winery. His other roles have included membership in the South Carolina Bar Association’s House of Delegates, a board member of the South Carolina Brewers Guild, and an affiliate member of the same organization. Moreover, Brad is a certified Design for Six Sigma (DFSS) Green Belt and has accumulated over a decade’s worth of experience conducting onsite audits and financial analyses on domestic and international secured credit transactions, totaling over $5 Billion across diverse industries. With such a comprehensive skill set, Brad can provide sound legal and business advice that can help you manage and expand your business operations effectively. He can assist with selecting and establishing the most appropriate legal entity for your company, securing and retaining federal and South Carolina alcohol licensure, securing company incentives, and drafting, reviewing, and negotiating favorable contracts. All these services are designed to minimize risk and maximize both earnings and tax savings. Brad also offers estate planning services. Recognizing that life’s ups and downs can sometimes distract from ensuring that your loved ones are well taken care of, Brad applies the same legal and business fundamentals to his estate planning practice. These services include the preparation of wills, NFA firearms trusts (gun trusts), power of attorneys, and advance directives. So when your day at the office is over, you can relax, knowing that your business is running smoothly and your family’s future is secure, thanks to a tailored estate plan. If you’re seeking a trusted ally to guide you in business and personal legal matters, contact Brad Thomas at bthomas@scattorneysatlaw.com or review his firms website at www.scattorneysatlaw.com and discover how he can help you confidently navigate and enjoy all aspects of your life!
"Brad was responsive, professional and very helpful. I would definitely recommend him."
Daron J.
On this platform I have largely been helping people draft prenuptial agreements for many different situations as well as mediation/arbitration. I am an entertainment attorney by trade with experience in drafting and negotiating contracts in the fields of television, film, unscripted, music, and everything each entails. In addition, I have experience drafting and negotiating property leases and service agreements of various types. I am available for all types of contractual review or any drafting needs you may have.
"Daron was excellent for helping with my prenup! He was incredibly responsive and worked with me when we had to make last minute changes to our plan due to the other party’s lawyers making some big mistakes, which Daron was able to correct! He was also great about explaining the process in simplified terms that I could understand."
Kelynn P.
Kelynn was born and raised in Cleveland, Ohio. She attended Spelman College in Atlanta, Georgia where she earned a Bachelor of Arts in Philosophy, and thereafter returned to Cleveland for law school . She earned her Juris Doctor at Cleveland State University - Cleveland Marshall College of Law. She primarily practices insurance defense and civil litigation. She has also practiced in a variety of other areas including family law, contract disputes, contract review, complex civil litigation, medical malpractice, products liability, and mass tort.
"Kelynn P. was excellent. I set up a project to assist my sis in law on a project. Her feedback was as follows: "Kelynn was great. I was on a tight time crunch and in search for an attorney. She quickly got up to speed on the status of the project. She used her expertise to add value and she was patient, listened, and was knowledgeable. She is knowledgeable of the law, negotiations, contracts, terms and conditions, and provides real life examples that provide valuable insight which empower you to strategically make the best decision. In short, Kelynn was instrumental in the resolution of my project. Overall the quality of work was exceptional and she even followed up with me to see how things are going after her scope of the project was completed. She cares about her projects and clients. I recommend Kelynn and if I need anything in the future, I know who to contact and who to recommend. Thank you""
Frank V.
Navy veteran with 15 years experience practicing law in Chicago.
"Frank was perfect! Super quick response time, highly recommend."
Laura B.
I received my undergraduate degree from Columbia University and my JD from UC Davis School of Law. I specialize in drafting, reviewing, and litigating contracts, general civil litigation, restraining orders, and family law. I have helped entrepreneurs form their business entities and grow their small businesses. This area of my practice has focused heavily on YouTubers, podcasters, and individuals creating unique online platforms. In the family law context, I have helped my clients petition for and obtain custody of their children and modify existing custody arrangements.
"I had the pleasure of working with Laura B. on some recent legal matters, and I genuinely can’t recommend her enough. From start to finish, Laura was professional, responsive, and incredibly efficient. What really stood out to me was how thorough and proactive she was — she didn’t just check the boxes, she went above and beyond to make sure everything was done properly and on time. Legal work can feel overwhelming, but Laura made the entire process smooth and stress-free. She explained everything clearly, answered all my questions promptly, and stayed one step ahead the entire way. I never had to chase her for updates — she was always on top of it, which gave me a ton of peace of mind. It’s rare to find someone who combines legal expertise with such a down-to-earth, approachable style. I felt like I was in really good hands the whole time. I’ll absolutely be working with Laura again for any legal needs that come up in the future, and I wouldn’t hesitate to recommend her to anyone looking for a sharp, dependable, and genuinely helpful attorney."
August 18, 2023
Nicole G.
Legal and compliance professional with expertise in commercial transactions, government contracting, corporate governance, and nonprofits.
August 18, 2023
Michael D.
Primary areas of expertise are in providing solutions to folks in financial distress. Best suited for those tasks where out-of-the-box performance is expected and needed.
August 19, 2023
Richard P.
I’m passionate about IP, AI, privacy and business. Learning to code. Book some time to discuss how I can add value to your project. Hablo Español y português.
August 22, 2023
Austin R.
With experience in Criminal trial, Civil trial, writs and appeals, I have both reviewed and drafted contracts from employment contracts to software development and everything in between.
Ryan C.
Ryan Clement, the Principal Attorney at Business and Technology Legal Group (www.businessandtechlawyers.com), has been a Colorado licensed attorney for almost 20 years and has extensive experience in all matters related to corporate law, software and technology law, intellectual property, data privacy and security, business startups/formation, commercial transactional matters, general business counsel, compliance, and litigation. Ryan graduated with high honors from the University of California, Santa Barbara before attending the University of California, Davis School of Law and graduating in 2004. Post-law school, he completed an esteemed two-year judicial clerkship at the Second Judicial District Court of Nevada. In 2007, Ryan Clement became a licensed attorney in private practice, working at several prestigious law firms before forming and operating his own successful law firm in 2012 at the age of only 31. This keen business acumen and entrepreneurial drive was the impetus behind Ryan’s desire to practice business and technology law, ultimately forming the foundation of Business and Technology Legal Group. In addition to his top-tier legal credentials, Ryan also holds a Master of Business Administration (MBA) degree from the University of Colorado, Denver, and has over a decade of experience working in the software industry at Fortune 500 and publicly traded companies. This vast experience in the technology and software sector, combined with his many years as an attorney provides the intersection of legal, technical, and business skill sets that sets Ryan apart from the crowd of business and technology attorneys in the market.
Veronica B.
August 27, 2023
Veronica B.
I am fully licensed attorney in New Jersey & Pennsylvania. Practicing law for 29+ yrs, I've tried over civil 120 jury trials; as Plaintiff & Defendant. My success rate is 85%. People need a practical, common sense approach to solving legal issues. I have assisted in establishing 226 businesses in over 22 countries, my experience runs the gamut of reviewing commercial contracts for completeness & legal protection for the parties. I have procured & drafted contracts & agreements for municipalities, charitable organizations, start ups & more. I manage 3 LLC's in Florida. Wills & Estates is another practice area. The best way to get to know me & my legal services is to reach out & start a conversation.
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