Contracts serve as the bedrock upon which deals are built and secured. Whether you’re a seasoned entrepreneur or a budding startup, mastering the art of drafting business contracts is essential for safeguarding your interests and fostering fruitful relationships. Here, we briefly describe some keys to contract success.
Drafting Contracts with Precision:
Drafting a contract requires meticulous attention to detail and a comprehensive understanding of legal terminology. Avoid convoluted language or overly technical jargon that may obscure the intended meaning. Instead, strive for clarity and precision, using plain language wherever possible.
Key Elements to Include:
So, what to include in a contract? Generally speaking, your contract should include the following:
- Identification of Parties: Clearly state the names and roles of all parties involved, along with their contact information and any relevant affiliations.
- Scope of Work: This is critical. Define the goods or services to be provided or performed, along with any associated deliverables, timelines, and milestones.
- Payment Terms Believe it or not, we’ve seen contracts that have omitted payment provisions – or otherwise contained unintelligible payment provisions. Don’t repeat these mistakes. Instead, specify the agreed-upon payment amount, schedule of payment, and method of payment, as well as any penalties for late payment or non-payment.
- Confidentiality and Non-Disclosure: To the extent required, include provisions to protect sensitive information shared during the course of the agreement or contemplated transaction. Doing so can help safeguarding against unauthorized disclosure or use.
- Intellectual Property Rights: Address ownership and licensing rights for any intellectual property created or used in connection with the agreement.
- Indemnification: This is an often-overlooked aspect of contracts. But an indemnification provision allocates responsibility for any losses, damages, or liabilities arising from the contract. This provision should be clear and precise.
- Governing Law and Jurisdiction: Determine the applicable law governing the contract and specify the jurisdiction for resolving any disputes that may arise.
There is a lot more, of course, to contract drafting. But the above should help jump-start your creative, drafting process.
If you need assistance to further understand how this may impact your business, please contact us at info@mnklawyers.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
