7 Secrets To Creating The Perfect Contract
7 Secrets To Creating The Perfect Contract
Use these 7 secrets from a real, practicing attorney to create the perfect contract for your small business!
Tip #1 – Get The Contract In Writing
The first step is to get the contract in writing – always.
When you get the contract in writing you have physical proof that the contract exists. If you don’t get the contract in writing it may be hard for you to get a verbal contract enforced because there is no clear evidence of the offer, acceptance, and consideration.
The more practice you get writing out contracts, the better you will get creating the perfect contract.
Tip #2 – Utilize A Contract Template For Small Businesses
I have learned that it is always good to start off with a solid foundation when it comes to writing the perfect contract.
The second step is to know that you don’t have to handwrite every single contract. Instead, use a contract template for small businesses to help you with creating that perfect contract.
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Business contract templates are created in advance and are added onto as different situations arise.
The best part about them is that you never start from scratch! All you have to do is make a copy of the template and then add in specific terms that relate to the transaction you’re drafting the contract for.
You can use the template as a checklist to make sure you’re not leaving out any critical contractual information and as a guide to ensure you’re protecting yourself in the same manner each and every time.
Tip # 3 Create A Contract Outline Before You Begin Writing The Contract
It is very – very important to always never miss any step in the contract writing process.
The third step is to have a solid outline for your contract before you fill in any information in the contract.
This is important because you want to ensure that you don’t leaving any information out of the contract that needs to be in the contract.
A typical contract outline looks like:
|Recitals + Party Obligations|
|Limitations Of Liability|
|Intellectual Property Protection|
|Legalities + Boilerplate Terms|
|Signatures Of Parties|
|Attachments (If Any)|
Tip #4 – Clearly Identify All Contract Parties
There are two main parties in a contract: Party A and Party B.
The fourth step is a very important one. You will want to clearly identify all parties in involved in the contract so that the right party is obligated or protected.
But who is Party A or B? A person or a company?
Who is signing on each party’s behalf and what is their role within their company?
Tip #5 – Include The Four Elements Of An Enforceable Business Contract
The fifth step is to ensure these four elements are included in your contract – this is a must!
|Elements Of A Contract|
|Element 1: Offer.|
|Element 2: Acceptance.|
|Element 3: Consideration.|
|Element 4: Mental Capacity.|
These four elements are the most important elements in a business contract.
Without an offer – there is no valid contract.
Without an acceptance – there is not valid contract.
Without a consideration – there is no valid contract.
If the parties are not mentally competent, there is no valid contract.
So, to create the perfect contract you must include all four of these elements.
Tip #6 – Don’t Be Afraid To Ask A Small Business Attorney For Help
Writing a contract can be confusing- and even complicated.
You need to know the laws governing the contract and you must know your final end goal for creating a contract in the first place.
You want to get things right the first time, so don’t be afraid to ask for help if contract writing isn’t your expertise.
You may have the idea, the end goal, but a small business attorney can help you create the perfect contract that you need for your small business, during the time that you need it.
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Tip #7 – Read And Review The Final Contract Draft
Last, but not least: read and review.
Then, read and review the contract over again to check for accuracy to avoid any contractual writing mistakes.
Avoiding contractual writing mistakes comes with lots of practice, but practice makes perfect! When you conduct several contract reviews, you will lesson your chance at making contractional writing mistakes in your contract, in return, you’ll be well on your way to creating the perfect contract for you small business.