Contract Drafting Best Practices for Your Small Business

sourceContracts can be intimidating for small business managers; however, you can count on the best practices in contract drafting. With a little thought and the appropriate tools, you will find what you require and safeguard your business from any breach.

Contract Drafting Process

The first step of the writing process is to establish which parties they are and the things each would like to achieve.

It’s simple enough, but the essential requirements that are part of the document are frequently ignored. It’s a common mistake to overlook the key requirements of the contract. Sometimes, during this redlining procedure, some or all parties realise the contract does not provide what they want! Luckily you can partner with ContractSafe to make the drafting process easier. It delivers a powerful, easy to use and effective contract management software that increase the contracting speed within your organisation

When you’re choosing words, make sure you use simple words. It may seem appropriate to use legal language, but it’s rarely the case, particularly when you aren’t sure what it signifies. Smaller businesses are often demanding if they “borrow” clauses from another contract without scrutinizing them. Each clause should accomplish just one task. If you want to add a new description or deliverable, break the two.

Examine the contract for vagueness and ambiguity. The lack of specificity in an agreement is a huge signal. Find out where you could have used a term or name to refer to two items – two different products, maybe. You should differentiate them each when they’re discussed. In addition, ensure you’re not referring only to one object with two other names. Contracts aren’t the best ideal place to showcase your mastery of synonyms. Reading through the entire contract, you should look for more significant conflicts. Does one section contradict the other?

Last, put a fresh pair of eyes to look at the issue. A new pair of eyes could spot things you overlooked among the dirt.

Contract Drafting Tips to Help Your Business

sourceComprehending Your Concerns

If you meet with your lawyer to discuss the standard agreement draft, you have the chance to consider what is essential for your business. Perhaps you’ve never even thought about arbitration or mediation. It’s the right time. It doesn’t matter if it’s intentional or simply the result of spending an hour talking with counsel regarding certain aspects of your business. The writing of an ordinary contract can bring up several elements that may not come to mind when considering negotiations for deals.

Your Terms

If two companies sign an agreement, they each have specific needs and priorities particular to the company. For instance, if one firm has a contract that is the only one it will use while you negotiate certain conditions, the other’s boilerplate standard language has now been imposed on your contract. Wouldn’t you prefer it to be reversed if the things that matter to you became the foundation of the agreement?

Planning Your Exit

You shouldn’t enter into a deal with the intention of ending the contract, but contemplating the finalization is an excellent method to ensure that it doesn’t happen without planning it. You’ve spoken with your lawyer throughout the standard contract drafting process, which means you understand your needs and preferences in detail. You can craft agreements that permit you to leave whenever you need to and without losing the entire money. If you don’t create an exit strategy from the beginning can result in a lot of expense later on.

Pay Attention To Grammar AND Punctuation

Many people don’t realize the significance of a comma until they discover that this seemingly little punctuation could cost companies thousands of dollars. The tense of pronouns, verbs, or conjunctions, as well as punctuation, must be handled carefully. These are usually minor issues that the drafters, in the beginning, tend to miss because they’ve gone through the document numerous times. Therefore, having someone not as familiar with the document perform the responsibility of proofreading can be beneficial.

Include Conflict Resolution Procedures

The purpose of writing contracts is to prevent future disputes, yet contract disputes always clutter the court dockets. Since resolving conflicts is usually inevitable, it is crucial to ensure that the procedure for resolving conflicts is clear and spelled out. This may include the resolution requiring arbitration or mediation and a list of state laws that apply. It is usually the standard language that is easily extracted from other kinds of contracts as long as it outlines which date, time, and how the resolution process will proceed in the event of a need.

Accelerate Your Contract Drafting Process

Your business needs the best tools to assist with contract drafts. A contract lifecycle management system can help you in streamlining the process and protect you from the possibility of a breach. The lifecycle model, designed by experts over many years of study and research, is a single-way process designed to produce contracts with fewer chances for errors effectively.

Clauses form the basis that governs your contract. A clause library can allow you only to use those clauses which have received approval from your legal department. After the contract is written, a solid system of redlining and reviewing tools will speed up the remaining part of the contracting.

The contract-drafting process isn’t necessarily a pain. With the proper tools, you will gain clarity, create an appropriate contract and have it signed in a matter of minutes. Get a demo today.