Write a Business Contract

Joseph, 29 year old, upcoming, dashing youngster and a business man was almost through with sealing the deal with his partners. He had got everything settled. The logistics, the profit margins, the share of each of the partner and hundreds of other things. The problem was to put it down in legal terms and draft the final contract. After pondering over what and how he could do it, he went to his father and that proved to be of great help. The drafting of the agreement went on smoothly and everything turned out to be fine.

So the cue to be taken here is always approach seasoned campaigners and if you are in a fix, consult someone. So if you are sailing in the same boat as Joseph or the likes, here are a few tips to help you out.

Writing Contracts

To start off, a written business contract will come into the picture, only when you are hiring someone as an independent contractor or buying and providing goods and services. Then in matters of lease and real estate, selling your business and partnerships or joint ventures are better if sealed. Franchising, confidentiality agreements and non compete agreements are few other areas where a contract should be ideally used. Then it should include date, names of the parties involved, details of the services your company will provide or receive, payment amounts, payment due dates and interest on late payments. It also includes deadlines for services due, date of expiration, renewal terms (in case applicable), damages for breach of contract, termination conditions and signatures.

Tips for Writing a Business Contract

Specificity: Specificity does not mean excessive usage of legal jargon. It just means to clearly state the terms and conditions without any ambiguity. It should be clear, concise and have the correct focus. Be as specific as possible. For example, if you want something to be delivered to your office or warehouse or store, specify the time you would want it to be delivered, every day or month or bi weekly or tri-weekly or whatever. That way, there is absolutely no confusion.

Clarification: Do not anticipate or assume that your partners are well versed with the conditions of the contract. It is always good to straighten things out and make your requirements clear. If you are not drafting the document, just outline the conditions for your business before the negotiations commence.

Know the Law: Flip through the law book. Local and regional regulations as well as federal laws could be related to your contract. See if any of the laws apply to your agreement and vice versa, and also if it has been drafted in relation to that law. Internet, local business guild or an attorney can come to your rescue in this regard.

Do not Miss out the Fine Print: Read and review every line and word of the contract for you to understand it thoroughly. There would be no consideration for statements like 'I assumed' or 'I thought', if the court is involved at some point of time.

Attorney-at-Help: If at all you are stuck up somewhere, consult an attorney and know what and how to negotiate. Mind you, it is a skill which is a must. Get a rough idea of what points you would take lying low and where you would not compromise at all. Ultimately, before sealing the deal by signing, do not fail to show it to your attorney. That will save you a lot of headache later on.

A written contract is always good to be on the safer side in the advent of a conflicting situation with your partners. If there are any problems, you have a proof of the terms settled between the parties and what was said by whom. And yes, always keep a good number of copies of the contract after it is signed for the above mentioned reason of dispute.

For other intricacies and nuances apart from this, it would be good to approach a legal help and have witness when you sign the contract.