As a business owner, it may seem like there are always a hundred and one different things that you need to learn in order to run your company. While you may have been doing only one thing in a previous role as an employee at another business, now it seems like you wear all the hats and have to be a jack of all trades.
Take, for instance, contract writing. The legal team at your previous company may have taken care of all that, but today you’re the one who needs to know how to write a contract. If you’ve found yourself in that sticky situation, then we’re here to help with a quick guide on how to write a contract agreement. Read on.
How to Write a Contract
There are four specific elements of a contract that make it a legally binding document. You need to have these elements in order to have a well-written contract.
The first such element is known as mutual assent. This is, in essence, a valid agreement on the contract terms from both parties. With most contracts, a signature will indicate mutual assent.
The second element is known as adequate consideration. These are the contract terms that govern the agreement. This will include the price for the product or service being exchanged, the duration of the contract’s length, and the like.
The third element is the capacity. The contract should stipulate the capacity of both signers as valid. If someone does not have the capacity to sign, the contract’s mutual assent will not be valid.
For instance, someone who is not in charge of the finance team at a company may not have the capacity to sign off on a company’s purchase. Thus, their signature on a purchasing contract would be invalid.
Last but not least, the contract must meet all jurisdictional criteria that exist in the region wherein the contract is signed.
Use e-Signature Software
In this digital day, it’s important that your business has the ability to let parties sign contracts digitally. To that end, you should leverage e-signature software.
This kind of software allows you to upload a PDF of a contract to the software. The software then sends the contract to all parties that need to sign it. An electronic signature is recorded — this signature is legally binding in a court of law, and the document itself will be stored in permanence.
Be sure to only use software that has a high number of positive customer reviews. A software tool that matches this description is https://www.approveme.com/contracts.
Writing Contracts, Made Simple
There you have it! Now that you know how to write a contract, you should be far better equipped to run the legal side of your business with minimal effort. There’s no reason why you need to spend hundreds of dollars on lawyers for such a simple task as writing a contract!
For more business advice, be sure to take some time to check out the rest of the articles available on the website before you leave!