Keys to Writing a Contract

Keys to Writing a ContractIn the course of doing business, there are opportunities for disagreements everywhere.  That could be between the company and employees, or contractors, or consumers.  In order to limit any legal liabilities in these disputes, companies often turn to contracts.

For a contract to be legally binding requires a few basic things.  The first is that it must contain an offer or a proposal, which can exchange goods or services for money or other valuable items.  That offer is qualified by the fulfillment of promised performance or terms and conditions of service. It is also important that an agreement is reached  between the two parties agreeing to the deal.  The following is some advice on how to create a valid contract.

The foundation of any agreement is the mutual understanding of both parties.  That is why is it necessary to uncover the what both people or organizations want from the relationship.  For example, for a sales contract, it is important to specify the goods which are being exchanged for money.  Identify the payment terms such as when payment will be made, how it will be made and what can be expected if payment is remitted late.

Once the motivation behind the agreement is identified, all other directives will follow.  But do not just agree and shake on changes without amending your current contract to include any new terms.   Verbal agreements are valid but hard to prove.  The best way to make a contract enforceable is to put it in writing.  It can also save the issuing company from costly business litigation.

Creating contracts is a smart way to protect your business and limit your liabilities.  Don’t let a business that you’ve created face any costly legal action, contact an experienced business attorney in Naperville who can guide your next contract.

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