Tips for creating a business contract

On Behalf of | Jan 7, 2021 | Contract Law |

Most types of businesses in North Carolina will eventually need legal documentation for agreements made between the company and other entities, whether they are other businesses, clients or employees. These agreements are often stipulated in official contracts that the business generally creates according to its needs and standards. However, for newer businesses or newer owners, creating a contract may be confusing, as it is important that it includes provisions to protect the business. Here are some simple tips for creating a contract for use in business.

First, it is perfectly fine, and even advisable, to make the contract uncomplicated and straightforward. Putting “contract” in the title as well as using other headings that make sense keep it easy to read and the intent clear. It is perfectly fine to use another basic contract as a guide that one can build upon that suits a particular need. The opening paragraph needs space to declare the involved parties and the date. If complicated or business-specific terms need to be included, it is a good idea to define their meaning right in the document.

Numbering paragraphs, using simple language and shorter sentences are also great ways to give the contract clarity. It is also a good idea to have a trusted third party review the contract for spelling errors, as well as the use of punctuation and conjunctions, as those may change the intended meaning of the contract. For a business owner being asked to sign another party’s contract, it is ideal to take one’s time in reviewing the document and asking for any needed explanation.

The best way to avoid any errors with a contract, whether a business is providing one or entering into one, is by consulting a trusted contract law attorney. An attorney here in North Carolina with extensive experience in this area of the law can reduce the chance of any errors that may prove costly down the line. Contracts are a crucial part of a business and it is important they are handled correctly.