Understanding The Cost For Lawyer To Write A Contract
The average cost of contract drafting usually varies between $200 and $800 for an uncomplicated contract and $1,000 and $5,000 for a tricky one. In addition, contract lawyers can present hourly or flat fee contract drafting assistance. Also, we can say that the cost of drafting a contract relies upon the extent and depth of your goals and the elaborateness of terms and industry relationships. Below is a brief overview of different contract types and the average cost an attorney might charge to draft these contracts.
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Simple Contract Writing
As mentioned earlier, hiring an attorney to write a simple contract can vary between $200 and $800 as a flat price. On the other hand, online contract lawyers usually set their contract writing services at a rate between $100 and $350 an hour.
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Complex Contract Writing
Complex contract drafting is more costly than writing a simple contract and spans between $800 and $2,500 as a flat cost. On the contrary, some online lawyers may charge an hourly rate between $150 and $500 for more comprehensive services, such as contract modifications and negotiation.
Also, note that the attorney's contract writing service charges usually include the following:
- Initial consultation meetings.
- Attorney-client rights protections and engagement letter.
- Review of the contract with the customer.
- Initial client intake meeting
- Questionnaire for key terms
- Contract drafting
- Client revisions
- Re-delivery of the finalized contract
How Do Attorneys Charge for Writing a Contract?
To draft a detailed or straightforward contract for their clients, lawyers usually charge an hourly or flat fee or a combination of an hourly and flat fee for their assistance. Below is an overview of the hourly and flat fees charged by attorneys.
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Hourly Fees for Contract Drafting
Lawyer hourly costs get evaluated by the hour and generally in 10 or 15-minute breaks. This billing process is less predictable and potentially more costly as any issue might occur when you document and negotiate a contract. These issues can considerably increase your expenses when compared to flat-fee contract writing. Some general hourly rates in the industry for contract writing are as follows:
- Senior partner or principal – $600 – $700 per hour
- Associate – $350 – 450 per hour
- Lawyer – $250 – $350 per hour
- Junior lawyer – $200 – $250 per hour
- Paralegal – $100 to $200 per hour
- Graduate – $150 – $250 per hour
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Flat-Fee for Contract Drafting
Flat-fee contract writing offers more predictable and affordable costs than hourly lawyer fees. You decide to pay your lawyer a flat rate. Your lawyer decides to complete agreed-upon assistance for that price regardless of the time dedicated to finishing the contract.
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Hourly Billing and Flat-Fee
In numerous cases, attorneys will decide to perform contract writing for a flat fee. A standard engagement will comprise the below services:
- The first draft of the document
- Initial consultation
- Call to discuss contract
- One or two free revisions
Sometimes flat-fee arrangements can move into hourly fees if you surpass what the attorney has consented to provide. There must be unambiguous anticipation of what remains included in the flat charge before you begin working, so you never have to overpay for any service.
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What Information Does Your Lawyer Need When Drafting a Contract?
When choosing contract writing services on an hourly basis or even at a fixed cost, it is better to keep track of the details your attorney would need as it will help save your time and costs. Here are some prominent contract types and the details a lawyer might need to draft them.
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Sales Contracts
Sales contracts usually get executed in the commission of an investment or property. Here are some documents your attorney would need to draft a sales contract.
- Bills and estimates issued to your client
- Report of the goods or products purchased
- Contact details of all parties
- The logistics of supplying your assets
- Meeting memos between you and the buyer
- Preferred payment option
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Independent Contractor Contracts
Independent contractor contracts are crucial when employing provisional employees. The documents required to draft these contracts are as follows:
- Copies of task postings
- Bids received by the contractor
- Any current contract in place
- Interactions between you and the contractor
- Wages and payment arrangement
- Contact details of all parties
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Consulting Contracts
Consulting agreements are necessary when delivering consulting assistance. Here are some details your lawyer would need to draft a perfect consulting contract.
- Contact details for each member.
- Communications between you and your client.
- Estimates, bids, and invoices issued.
- A portrayal of how you want your contract structured.
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Employment Contracts
Employment contracts are vital for employing full-time workers. Below are some details your lawyer would need to draft the employment contract:
- Emails and notes to the employee.
- Document of the job posting and explanation of the position.
- Contact details of all parties.
- The information included in the hiring records.
- Details about salaries and benefits you provide.
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Partnership Contracts
Partnership contracts specify the provisions between company partners and how they split assets and liabilities. The documents required to make partnership contracts are as follows:
- Names and contact details of each partner.
- A copy of your partnership registration.
- Copies of relevant authorizations and credentials.
- Copies of communications that took place between the partners.
Key Terms
Here are some terms you might come across when you read a contract drafted by a professional lawyer.
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Agreement
Any arrangement reached between two or more people, either verbally or in writing. Nevertheless, an agreement is not legally binding or is enforceable in court only when it becomes a contract.
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Implied Terms
It means suggested phrases in a contract by law, practice, or custom without actually getting mentioned in writing or orally by any person entering the contract.
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Liability
It is the legal obligation of people entering the contract on its breach to compensate another person entering into the contract for any damage so caused.
Conclusion
Overall, how much your attorney will charge you for preparing a contract eventually depends on the problem you are encountering and the lawyer you hire. Nevertheless, entering a fixed-fee contract will help in the long run if you like to save some bucks. Also, for affordable contract writing services, you can always depend on expert lawyers at ContractsCounsel, where you will always have to pay a reasonable cost even for detailed contract drafting.
