Common Mistakes When Drafting Contracts
Oct 2 2019 0

Common Mistakes When Drafting Contracts

The majority of serious business agreements necessitate the writing of a contract, a binding legal document that lays out the terms to which both people have agreed and serves as a guide to those people when it comes to satisfying their commitments towards each other. In the most ideal of conditions, the contract might sit in a file cabinet for years, never to see the light of day. There are, however, circumstances in which the contract will need to be re-examined. 

One of those circumstances is when a conflict has emerged. If the verbiage in your contract is unambiguous and clearly describes the goals of each person, as well as the accepted terms, a quick evaluation of the contract should put to bed any debate, which is one of the objectives your contract attorney will have in mind when drawing up your business contracts.

Contract Drafting Tips

Common Mistakes When Drafting Contracts

These tips will help you steer clear of imprecise wording when drawing up your contracts:

Read Standard Forms Carefully 

Although it is not advised for major deals, some companies use a basic format for all of their contracts. It is vital to ensure all of the wording in that contract pertains to your distinct situation. Generic, one-size-fits-all verbiage will often provoke a dispute should unexpected problems arise or if the legal intention of the wording is not understood.

Stay Away From Superfluous Language 

Being overly wordy is a general characteristic of boilerplate contracts. It almost seems as though one of the objectives of the designers of this type of legal document is to overwhelm and intimidate the average Joe who does not have a legal background by throwing in a lot of unnecessary words, even if they add no meaning to the contract, and by stating basic concepts in an overly complicated way. 

This exercise in hubris can, as you might expect, backfire. This is especially true when the unnecessary wording ends up contradicting another portion of the contract or making that portion obscure when the document is read in its entirety. Additionally, this excess verbiage affords a wider berth for a misunderstanding of the terms accepted by both parties which will increase your odds of encountering some form of dispute.

Avoid Last-Minute Inclusions 

Adding a clause at the last minute is playing with a loaded gun. Absolutely avoid this if you can, particularly if you are operating under a short deadline since mistakes are more liable to transpire when people are under pressure.

Proofread

This cannot be emphasized enough. Once you have drawn up your contract, be sure you read it in its entirety for transparency and precision. Be certain your terms and conditions are explicitly declared and there are no discrepancies or mistakes in grammar.

 If you are able, have it evaluated by an experienced contract attorney. They will be able to make suggestions and inform you of any possible vulnerabilities in the contract, like a clause that might be missing altogether.

If you are drawing up a business contract, are interested in having a contract drawn up to memorialize your deal with another person, or need an experienced business contract attorney to examine a previously drafted document, please reach out to the trusted and qualified business law and contract law attorneys at Leiva Law Firm by calling our law offices at (818) 703-1777. Our attorneys speak both English and Spanish.

 

 

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