Simply put, yes, you can write your own legal contract. You just need to be sure to include key components such as an offer, an acceptance, an exchange of value, and the willingness of both parties to enter into a contract. Legally binding contracts can be done both in writing or orally. However, when it comes to business transactions, it’s best to have the majority of your contracts in writing.
There is no law requiring contracts to be written by a lawyer. There are no laws that indicate any specific form or font they should be in. As a matter of fact, contracts can even be hand-written on a piece of paper.
Hence, it’s better to shift our focus to:
What Constitutes a Legal Contract?
If you have the resources at your disposal, it’s much easier to hire a lawyer to draw a contract up for you. However, if you’re an entrepreneur handling a start-up, hiring a lawyer could prove expensive or too much of a hassle. In that case you can draw up the contract yourself or alternatively, hire a freelance legal writer.
To write a legal and binding contract, we should first identify which areas it should cover and the fundamental characteristics it should possess. In addition to satisfying these key components, a well-written contract that can be used by new businesses should also:
Be Clear and Easily Understandable
Contracts should be clear and easily understood. Think about it – you wouldn’t want to sign a contract written in a language that you don’t understand. The same holds true for a contract that is written in incomprehensible legalese containing a plethora of complex terminologies. Remember: there are no laws that require a contract to be written in legal mumbo jumbo.
When you sign a contract, you’re making promises that can have significant repercussions. Signing something you don’t understand is like signing with your eyes closed. If you can afford a lawyer to translate the contract for you, then by all means do so. However, a majority of people don’t have that luxury, so ensure that any party can easily comprehend the contract you’ve drawn up for them.
A contract should be seen as a medium of communication. If either party fails to comprehend what the contract says, the chances of miscommunication taking place increase. Every contract should provide an environment built on transparency and trust between two parties.
Stipulate Your Needs and Expectations in the Transaction
Make sure to include and indicate any expectations you have from the other party in your contract. For instance, if you are a freelancer whose services are being hired by a client, and you expect your client to shoulder variable expenses like gas and food, make sure this expectation is indicated in your contract.
Remember: a contract can also serve as a communication tool for your business. Drawing up a contract will help you figure out what your needs are and what needs to be discussed in detail.
Cover All the Terms That You’ve Agreed Upon
As mentioned previously, contracts can either be written or oral. However, with oral contracts, you have to rely heavily on memory and goodwill, both which can unfortunately be fleeting. With a written agreement, you eliminate the chances of the other party using “did I ever agree to or say that?” as an excuse. Furthermore, it can serve as evidence should disputes ever arise regarding the contract.
Protect You and Your Business’ Interests
Carefully consider and inspect the transaction or relationship that you’re about to enter. Analyze not just potential opportunities but possible risks as well. For instance, if you’re entering an agreement for a loan that you’ll offer, you should indicate if you expect it to be fully paid within thirty days, whether or not it’s on an installment basis, and the consequences for missed or late payments. It’s important to have these possibilities covered in your contract.
Conclusion
Can you write your own legal contract? Definitely! Now it’s up to you to put the aforementioned features together to write a well-written and legally binding contract that can help you progress further in your career. Click and read on to find out more about how to draw up a legal agreement.
