5 Things To Consider When Drawing Up A Legal Contract

Every single business or legal activity requires a contract. However, people get confused when they step-in this process. Here is the list of 5 things, must consider when drawing up a legal contract.

1 – Get it in written form

Although businesses can be done by oral agreements but they cannot be enforced in court. So in order to avoid risks of losing agreements, duplicity and any type of deception it is necessary to have written agreements specifically in agreement of non disclosure and lease agreements. In these written documents, there should be clearly mentioned each party’s rights and obligations.

2 – Include all the details

If you really want to go longer within business and want bigger profit, do mention each and every detail in your contract before business or any deal gets started. Clearly mention roles of higher management in your company. Mention loan details if they are pending or any bank activity regarding your business project. With these details, you will gain trust of your partners and your clients.

3 – Use simple language

Language is one of the key elements when it comes to drafting a contract, because it is essential for both parties to understand the contract thoroughly. Use simple and easy words and most likely to be direct and to the point. Reason is to avoid misunderstandings and conflicts. Ask your lawyer to make terms and conditions in sequence and try to focus only on the contract niche.You can also use legal tech software like Clever Contracts. Where you can get a lot of contract templates. You can edit and write contracts by yourself. So Drawing up a legal contract is now very easy with these legal-tech software.

4 – Offer and acceptance

An offer is a statement of contract in which one party makes an offer, accepted by another party and in result property, goods, products and services exchanged between these two parties.Acceptance is the final concurrence of both parties to agree with the terms of the offer. While terms of the offer can be negotiated before acceptance. For example, employee contracts.

5 – Termination of the contract

Last but important, make sure on which basis an agreement or contract can be terminated or cancelled. Because termination from a contract is more critical situation than making a contract. There should be clearly mentioned about the date when the contract is ending and what would be consequences if any party cancelled the contract before time.