If you’re a business owner, no matter how large or small your enterprise is, you want to ensure that every business deal you make is set in writing for posterity. After all, compared using handshakes to close deals or a gentlemen’s agreement, a written business contract can be used as evidence should you enter into a legal dispute with the other people and businesses involved.
A poorly written business contract might also cause the other party in your business deal to back out, especially if they know how to make their way around contracts better than you do. You’ll want to learn the following tips on how to draft a professional-looking business contract:
1.) Only use a business contract template available online for reference.
As your hectic business schedule might not allow time to sit down and write a draft of your business contract, you may have decided to download a template of one and simply put your name and the name of the other party in your deal on it. Aside from having committed plagiarism by copying and filing the modified contract, you will also raise suspicion and make the other party in your business deal think the contract wasn’t even made by you at all.
You should only use a template that you found online as a reference. Use an online contract, easily found with a quick search, as a guide for what a business contract should look like, and then make your own that’s more closely customized for your business deal.
2.) Make your business contract as easy to read and understand as possible.
If you don’t know anything about business contracts at all, you might be under the impression that they’re all written in legal language that the average person can barely understand. This might be why some people tend to passively sign their name on contracts instead of thoroughly reading through every word and page.
- There’s no need for you at all to use complex words and phrases in any business contract that you’re writing. In fact, the simpler, the better.
- You should be careful, though, with writing every word in your business contract, since one small mistake or omission on your end can drastically change the entire meaning of the said document or even make it unenforceable.
3.) Make sure the business contract has all essential information.
Of course, a business contract isn’t complete without the following information in it:
- The names of all the people involved in the deal, including you and the other party.
- Payment details
- A confidentiality clause
- A termination clause
You may be asking why there’s still a need to set business contracts in writing. The answer to that is if your deal with anyone turns sour, your business won’t be placed in jeopardy by the lack of a business contract. Thus, it’s wise if you always have a business contract prepared for both you and the other party in your deal to sign. You’ll want your business contract not to be too generic, which is where the tips above on how to draft a professional-looking business contract come in handy. Once you’re done writing your business contract, you should have it reviewed by a lawyer as any suggestions from them can help you turn it into a better document.