Business dynamics often motivate entrepreneurs to write their own contracts. While it would never be advisable to do so, when there are no other options (either because of a lack of resources to hire a lawyer or because of the rush to close down a business that might be lost if a quick decision isn’t taken), consider the following recommendations:
1.-Identify your contract.
What is rented? It’s not the same as buying goods, renting property, or providing services. Although there are rules that can help clarify the nature of the contract (not by the title, but by the content), it will always be preferable that both parties have clarity that allows them to identify whether they are entering into a sales, lease or professional service contract; just to mention a few examples. In this section you must be thorough and if you have to write pages of agreements, it is recommended to hire professional writing services such as Writing Cheap. They are accustomed to writing in various formats.
2.-Identification of the parties.
Who hires? A very important point, don’t confuse the name of the person you are negotiating with the name of the contracted identity. You can make a contract with an individual or legal entity (company). If you are hiring a company, be sure to include it in the contract. If so, include the full name of the company (“official name”) of the consulting company that you have hired. If in doubt, ask: “Are you representing a commercial company that was formally established before a Notary / Public Broker or are you acting in this transaction as a natural person with business activities?”
3.-Identify contract objects.
What is the main purpose of the contract? The first clause in the contract must always be from OBJECT. Here you have to outline or in detail what the purpose of the contract is. For example: “Under this Sales Contract, Part A promises to sell item X to Part B, which promises to buy it for $”.
4.-Identify the details of the obligations of the parties.
What rights and obligations do the parties have? In the contract clause you describe “what” is contracted, in other clauses you can describe other situations such as “when”, “how” and “where”. If in the first clause you have mentioned that you are going to sell something, in another clause you can say: what characteristics the product object has from the sale, how and where the product delivery will be carried out, and if there are additional obligations such as hiring insurance, certain transportation, etc. To maintain orders and sequences, it will always be good to divide the rights and obligations of the buyer and the rights and obligations of the seller into separate clauses.
5.-Determine whether there is a penalty.
It is common to agree on criminal clauses where it is determined what happens if one party does not fulfill its obligations. Regularly this is about punishing those who are obliged to provide goods or services, if not on time or with the required quality. But it can also apply a “penalty” to the buyer if he does not pay on time the product or service purchased. Avoid abuse that can cancel your contract or criminal clause, never carry out penalties that exceed the total contract value. If a service is involved, this “criminal clause” usually comes from another clause or attachment called the “Service Level Agreement”, which is intended to set a minimum level to meet the service requirements or obligations.
6. -Differentiating responsibility.
This explains in the contract why everything is not responsible for (or both) of the parties. For example, in a service contract: “the company providing care for equipment will not be responsible for damage or malfunction if an unauthorized third party intervenes in the equipment,” “the agency will not be responsible for delays in delivering the advertising campaign if the client does not accept design or art. at the agreed time “or” each party is responsible for its own employees and acknowledges that there is no working relationship between the parties and their employees “.
Hopefully the 6 tips above can be really useful for you and your company.0