Page 69 - MICROHUB Handbook - ENGLISH

How to write a Business contract

Once you have established a long-term business deal, it is important to
get it in writing to avoid misunderstandings over time.

1. Get it in writing

In the business world, most agreements should be in writing even if the

law doesn't require it. A written agreement is less risky than an oral

agreement, because you have a document that clearly spells out each

party's rights and obligations in case of confusion or disagreement.

2. Keep it simple
Create short, clear sentences with simple, numbered paragraph

headings that alert the reader to what's in the paragraph.

3. Identify each party correctly

You need to include the correct legal names of the parties to the

contract so that it's clear who is responsible for performing the

obligations under the agreement (and who you have legal rights against

if things go wrong).

4. Spell out all of the details

The body of the agreement should spell out the rights and obligations of
each party in detail. Don't leave anything out: if you discuss something

verbally and shake on it but it's not in the contract,

it will be next to impossible to enforce. You can

always create a short written amendment. Or, if you

haven't signed the agreement, you can handwrite

the change into the contract.

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