People use contracts to create binding agreements between them and other parties, and one of the most common reasons people use them is to enforce their agreements.
If you want to create an agreement with another party and make sure it holds up in court, you’ll need to write an effective, legal contract. How do you do this, though?
If you are wondering how to write a contract that sticks in court, you must follow some essential rules. Here are ten pro tips to follow that will help you create a legally binding agreement that any court would uphold.
- Avoid Oral Agreements
The phrase “writing a contract” includes the word “write” for a reason. Writing a contract is not something you should do orally. Oral agreements can hold up in court, but they’re much harder to prove.
How do you prove that you have an agreement with another person if you agreed only by talking about it? If the other person agrees with you in court, the court might back you. What happens if the other party disagrees, though?
You’ll face more challenges in court with an oral agreement. Therefore, try to avoid using an oral contract.
- Put It In Writing
Contract writing is more effective when it’s in writing. The best thing you can do when creating a contract is to put it in writing. You can handwrite it or type it. Either option works, but typing an agreement generally holds up the best in court.
A written contract serves as proof of the relationship you have with another party. If you end up in a dispute over the agreement, you can refer to the written contract. The answers might be on this document, which means you could avoid court.
- Require Signatures
Another vital element of a binding contract is signatures. The written contract you create should contain the signatures of everyone involved in the deal. You might have two signatures on it or many. It depends on the number of people involved.
If you are handling this agreement electronically, you can use electronic signatures. You can create a free online signature to use by visiting a website that specializes in electronic signatures. This option is the easiest and most effective way to handle it.
- Get It Notarized
When creating a contract, it’s always wise to take it to a notary public to have the document notarized. Getting a form notarized proves that the signatures are genuine and helps establish the legitimacy of the document.
You can do this at a law office or bank, and every person on the contract should be present during it. After you get it notarized, the document serves as legal proof that all the parties signed it.
- Make Sure It Is Detailed
If you’re looking for more tips for writing contracts, another one is to make sure the contract is detailed. A detailed contract helps avoid disputes and problems in the future, as it will clearly state all the arrangement details.
When you’re writing it, make sure you think about all potential questions either party might have and include those details on it.
- Ensure That It Contains Consideration
A legally binding contract must contain consideration, so this is a vital part of writing the agreement. Consideration means that each party gives something and receives something. You cannot have a contract without consideration.
For example, if you decide to rent some equipment to another person, the contract must state that you are providing the equipment, and the other party is paying you a specific amount each month. The payment is the consideration in this contract.
- Include Correct Names of the Parties
Another vital thing you must do when writing the contract is to include the correct legal names of all the parties. You don’t have to include middle names, but you must write the names in their correct legal form.
The purpose of including the correct legal names of all the parties is to ensure that each person is responsible for their part. If a name is wrong on the agreement, that person could fight the contract on this basis.
- Provide a Description of a Way Out of the Deal
A contract should always include a description of the way out of the deal. Suppose the other party decides that they no longer want to be in the contract. They need a way out of the deal, and you can decide the way out when writing it.
The other party might face the consequences by breaking the deal, but they know what these are beforehand. The contract would state this information, which helps avoid issues if they ever decide to walk away from the arrangement.
- Number the Main Ideas
As you begin writing the agreement, the best way to put together a contract is to number the main ideas. By numbering them, you have a way to refer to a specific number if there is a problem.
Numbering the main ideas also makes it easier for both parties to understand the deal. Your contract might have a few numbered main points or many. Make sure you include as many as necessary.
- Ask a Lawyer to Review It
The final thing to consider is that you can have a lawyer review it. By having a lawyer review it, you can make sure the contract contains the necessary information. You can also make sure it is worded properly.
You can visit any type of business attorney law office to have this done. You’ll have to pay a legal for this service, but it is worthwhile as you can feel confident that this contract will hold up in court.
Learn More About How to Write a Contract That Sticks
Learning how to write a contract that sticks is essential if you plan on creating a deal with someone else. Without a contract, you have no recourse.
If you enjoyed this article and would like to learn more about other legal issues, check the rest of our blog!