Make Contract

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Need a make a contract for your next project? Smart move. A well-crafted legal agreement ensures both parties are on the same page while protecting their rights.

The article below outlines what you need to know about making a written contract:

What Is a Written Contract?

Written contracts are legally binding documents between two businesses for defining a contractual relationship. You can use these legal documents to address relationships, sales, transactions, and more. Contract drafting skills are essential when making an agreement since legal mistakes may result in unintended future consequences.

How To Make a Contract – Step by Step

Making a contract starts by understanding the particulars of the agreement and how local contract laws apply. Misapplication can result in costly legal mistakes. Ensure you have a solid approach in place for each and every agreement.

Here’s a general step-by-step process for making a contract:

Step 1. Identify the Parties and Contract Start Date

Written agreements must explicitly identify the contracting parties. Ensure that yours include the following details at a minimum:

  • Business name
  • Contact information
  • Mailing and physical address
  • Primary contact name

You should also add the agreement date. The agreement date indicates when the contract started, which is typically the signing date.

Step 2. Define Project Scope and Conditions

Contracts are akin to the “fine print” of your relationship with the other party. Your agreements must be as transparent as possible. The objective is to establish defined expectations.

While it may seem excessive, it is critical for you and your clients to delve into those precise specifics. You don’t want to feel obligated to work outside of scope, and you certainly don’t want your customers to believe they aren’t receiving for what they paid. Negotiate business contracts thoroughly to avoid this situation.

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Step 3. Set Terms of Consideration

Consideration is the compensation you give or receive in exchange for products or services, typically in the form of cash, equity, or other assets. There are several factors to consider when setting payment terms in your written contracts , including:

  • Billing practices
  • Hours available
  • Payment schedule
  • Project deliverables
  • Service hours worked

Step 4. Describe the Project’s Timeline

You’ll also want to explicitly define any project deadlines, such as project milestones and final deliverables. If the client supplies materials, explain what you need and the deadline by which you require it. Get as detailed as possible about the project timeline to help prevent disputes.

Step 5. Add provisions that Protect Your Rights

Projects don’t always go as planned. You’ll want to make sure your company is protected if something goes wrong.

Several clauses can help you achieve this objective, such as:

After drafting your contract, it’s ready for signing. Contracts are only valid if all parties sign them.

Here’s a pro tip : get your contracts signed in blue ink and retain the original so it’s more challenging for the other party to dispute the contract’s validity.

What’s Typically Included in a Contract?

Almost every industry uses contracts . Their options and flexibility allow businesses to create clauses that are applicable across multiple sectors. However, you should always seek legal advice for company, industry, and transaction-specific clauses.

Below, we have listed five provisions found in most contracts as well as how they work:

Term 1. Confidentiality

Confidentiality provisions prohibited one, some, or all parties from divulging specific information, such as trade secrets and intellectual property. This clause will also allow an aggrieved party to pursue damages should this situation arise.

Term 2. Contract Damages

Use damages clauses to deter other parties from breach of contract actions. You can stipulate that events, such as failure to perform or deliver, can result in other liquidated damages as a penalty.

Term 3. Dispute Resolution

Dispute resolution clauses detail a party’s options if a conflict arises. You can specify that parties file a claim in civil court or attend mediation or arbitration. These types of alternative dispute resolution (ADR) tend to be faster, cheaper, and off of public records.

Term 4. Force Majeure

Force majeure is a concept that protects parties from situations beyond their control. These situations usually include “acts of God,” natural disasters, and pandemics. Your force majeure clause ensures that you are not responsible for breaches related to these events.

Term 5. Governing Law

Governing law clauses establish which jurisdiction’s rules apply to the agreement. Companies most commonly set the governing laws as the same location as their headquarters.

Common Types of Contracts

Contracts address a wide range of personal and commercial transactions. Some are more common than others. While contact titles are usually self-explanatory, their nuanced uses aren’t always readily apparent.

Reviewing the list of common contract types below to learn more about which one is right for your needs:

Type 1. Asset Purchase Agreement

Asset purchase agreements (APAs) are contracts that exist between a buyer and a seller. They transfer asset ownership in exchange for compensation. The seller has control over which assets to sell and which to keep.

Type 2. Commercial Lease

Commercial leases are agreements between a property owner or manager and a business tenant. The property owner signs the agreement as the lessor, and the tenant is the lessee. Upon activation, the lessee has rights and obligations to uphold.

Type 3. Confidentiality Agreement

Confidentiality agreements are contracts that require one or more parties to keep proprietary information confidential. Employers typically use these agreements within the context of an employee or vendor relationship. An example of a confidentiality agreement is a non-disclosure agreement .

Type 4. Joint Venture Agreement

Joint venture (JV) agreements exist between two parties to achieve a common goal. You should include details, such as members, responsibilities, goals, and project dates. Unlike a partnership agreement, JV agreements only last until the end date.

Type 5. Partnership Agreement

Partnership agreements , also known as partnership contracts, are contracts between two or more people who want to collectively manage and operate a business for profit. Each partner is personally or professionally liable for the partnership’s debts. However, they also share a portion of the partnership’s profits and losses.

Type 6. Sales Contract

Sales contracts exist between a client and company when selling an asset. These agreements assure both parties that delivery will occur in exchange for payment. Upon satisfaction of contractual obligations, the client becomes the owner of the new asset or property.

Type 7. Service Contract

Service contracts are similar to sales contracts. However, instead of describing the details of the sale of a product, they relate to services offered by a business. For example, landscapers and web designers routinely use service contracts throughout their business.

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Contract Creation Fees

The below legal contract drafting fee data comes from ContractsCounsel’s marketplace. The table includes 12 popular legal contract projects.

Document Type Bid Avg Project Avg
Service Contract $650 $505
Partnership Agreement $875 $625
Single-Member Operating Agreement $525 $450
Multi-Member Operating Agreement $1,100 $950
SaaS Agreement $850 $725
Terms of Service $845 $450
Privacy Policy $500 $450
Employment Contract $650 $500
Consulting Agreement $650 $450
Contractor Agreement $650 $450
Convertible Note $650 $550
Promissory Note $695 $550

All data is flat-fee (not hourly), so the pricing you see below is the total to complete a project. Please note, pricing for making a contract can vary based on document type, number of custom terms, and number of revisions needed. The above pricing table includes averages.

How Long Does It Take to Make a Contract?

It takes between a week and a few months to make a contract. However, the time it takes you to make a contract depends upon several factors, including project scope, jurisdiction, and the number of parties involved. A contract negotiation and management strategy can help mitigate inefficiencies.

Can I Make My Own Contract?

You can definitely make your own contract! The most practical approach is working with business lawyers from the outset. A signed contract carries legal implications, which means you should understand your rights and obligations for a better result.

Do you need help making a contract? Post a project in ContractsCounsel’s marketplace to get free bids from quality lawyers to review and compare. All of the lawyers in ContractsCounsel’s marketplace are vetted by our team and peer reviewed for you to explore before hiring.

Meet some of our Make Contract Lawyers

Howard B. on ContractsCounsel
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5.0 (1)
Member Since:
July 29, 2022

Howard B.

Managing Member
Free Consultation
Tulsa, Ok
10 Yrs Experience
Licensed in OK
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Berkson is a dedicated, practical, and detail-oriented attorney licensed to practice in every state court of Oklahoma and the United States Northern and Eastern District Courts. He graduated from the University of Tulsa College of Law with Honors. While there, he received awards for highest grade in trial practice, legal research, and civil procedure. He was also the Executive Notes and Comments Editor for the Energy Law Journal, the official journal of the Energy Bar Association in Washington, D.C. The Energy Law Journal is one of the few peer-reviewed journals in the legal profession. Prior to becoming an attorney, Howard Berkson held executive positions involving a wide range of business and human resources management functions. He has in-depth knowledge of both business and HR practices. During his business career, Berkson negotiated, wrote, red-lined, and disputed contracts. He has answered charges, handled inspections, and supervised audits involving numerous agencies including the Department of Labor, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, and various state agencies. Berkson honed his analytical and writing skills while earning his Bachelor of Arts degree in Philosophy from the University of Washington. He went on to obtain a Master of Arts in Labor and Industrial Relations from the University of Illinois. Berkson’s work can be found in such publications as The Energy Law Journal, Human Resource Management Review and Personnel Psychology. He is a member of Phi Alpha Delta law fraternity and of Phi Kappa Phi honor society.

Erik D. on ContractsCounsel
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Erik has been a practicing attorney in Florida for over a decade. He specializes in employment and real estate contracts. He has represented clients big and small and can assist with any contract issue.

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Travis D.

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Travis counsels individuals and businesses on a broad range of complex topics. His practice centers on producing efficient, client-driven results. He concentrates his practice on real estate, construction, and general business matters with an emphasis on assisting clients both before and after problems occur by drafting contracts designed to best position clients to avoid disputes and litigating matters to a final resolution if problems emerge. Born and raised in Oklahoma, Travis is a triple graduate of the University of Oklahoma, having obtained his Bachelor of Arts, Master of Business Administration, and Juris Doctor degrees from OU. Prior to practicing law, Travis managed the finances and business operations of a successful construction supply company for several years. This insight into sophisticated business dealings, contractual issues, and strategic planning makes him uniquely qualified to handle a wide range of legal matters. Travis lives in Norman with his wife, Haley, dogs, Walter and Poppy, and cat, Ernest. Outside of the office, Travis enjoys playing golf and reading.

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Bolaji O.

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Bolaji O. Okunnu is an entertainment lawyer and founder of the Okunnu Law Group, PLLC based in New York, New York. His practice includes work in the area of copyright, trademark, contract, intellectual property and business law. As an entertainment attorney, Bolaji represents a diverse roster of celebrities, record labels, music publishers, artists, bands, entrepreneurs, authors, songwriters, artist managers, record producers and entertainment executives concerning their intellectual property, business affairs and creative assets. He is an expert at solving complex and sophisticated legal and business issues relating to contracts, copyrights and trademarks. With his background in both the law and the music business, he brings a broad perspective to problem-solving and business plan strategies. He also has an extraordinary ability to speak to the hearts of creatives while helping them discover their voice and clarify their creative dreams and assignments.

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Matt M.

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I love to learn, and I love solving problems. That's why I became a lawyer, and learned to solve legal problems for individuals and businesses and help them fix things when there's a snag. Touch base if you think I could have something to offer for you or your company. Experienced, results-oriented legal professional whose background and education have established him as a valuable resource in areas of corporate law, franchising, litigation, compliance, mortgages and banking, and more. Practice Areas Include: Corporate law, Franchising, Litigation, real estate, corporate law, civil disputes, insurance representation, corporate counseling, dispute resolution, risk management, regulatory counsel, compliance. Experience involves sophisticated as well as routine corporate structuring and transactions, simple and complex litigation, and written and oral advocacy such as depositions, mediated settlement conferences, trials, appeals, written pleadings and discovery, and case strategy and analysis. Experience managing and litigating disputes between parties and negotiating settlements across the spectrum of civil litigation, including probative discovery, successful motions practice, legal research and writing, appellate practice, and legal consultation to individuals and business entities. Further experience includes digesting and monitoring updates to the legal landscape to advise clients or departments and successfully adapt policies and procedures to assure compliance with applicable laws and regulations as well as to manage risk effectively. For those needing a skilled commercial or corporate lawyer, or for individuals whose rights need persuasive advocacy, I am a valuable resource. Representative work also has involved success on the appellate level, as in Baker Construction Company, Inc. v. City of Burlington and Hawthorne, LLC, North Carolina COA09-13.

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Madeline P.

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John C. on ContractsCounsel
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Licensed to practice law in the states of Missouri and Kansas. Have been licensed to practice law for 44 years. Have been AV rated by Martindale Hubbel for almost 30 years.

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