Drafting Contracts: Dos and Don’ts

If you’re drafting a contract for your business, it’s essential to get it right from the start. At MontanaroLaw, our experienced team is here to guide you through the process and ensure that your contracts are clear, fair, and legally sound. Don’t risk costly mistakes—contact us today at 516-203-1700 for a case evaluation and let us help protect your business interests.

Dos:

Do Be Clear and Specific

• Use clear, unambiguous language to ensure all terms are understood.
• Define key terms explicitly to avoid confusion.
• Specify deadlines, payment amounts, and other crucial details with precision.

Do Include All Essential Terms

• Ensure the contract covers the main aspects of the agreement, including services, deliverables, payment terms, and timelines.
• Clearly outline the rights and responsibilities of each party.
• Include terms about confidentiality, intellectual property, and dispute resolution if applicable.

Do Consider Potential Future Scenarios

• Plan for potential changes in the relationship, such as changes in pricing, timelines, or scope of work.
• Include provisions for contract termination, breach of contract, and how disagreements will be resolved (e.g., through arbitration or mediation).

Do Use Simple and Accessible Language

• Avoid jargon and overly complicated legal language.
• Write the contract in a way that any party can understand without legal expertise.

Do Have Legal Review

• Always have the contract reviewed by a legal professional, especially if it’s for a significant transaction.
• A lawyer can identify potential pitfalls or areas that may need more clarity or modification.

Don’ts:

Don’t Use Vague or Ambiguous Language

• Avoid vague terms like «as soon as possible» or «reasonable» without specifying what that means.
• Be as specific as possible to prevent different interpretations that could lead to conflicts.

Don’t Skip the Fine Print

• Don’t neglect to include important clauses, such as payment schedules, penalty clauses, or confidentiality agreements.
• Missing details can result in misunderstandings or loopholes that affect enforcement.

Don’t Forget to Address Breach of Contract

• Failing to include terms on how to handle breach of contract can lead to confusion when things go wrong.
• Specify the penalties, remedies, or procedures that will be followed in case of breach or non-compliance.

Don’t Draft a One-Sided Contract

• Ensure that the terms of the contract are fair and balanced for all parties involved.
• A contract that heavily favors one side could be deemed unenforceable or invite legal challenges.

Don’t Neglect Local Laws and Regulations

• Ensure that your contract complies with relevant local, state, and federal laws.
• Different jurisdictions may have specific rules governing certain types of contracts, such as employment contracts or consumer agreements.

Drafting contracts is a delicate process that requires attention to detail and a clear understanding of legal principles. Following these dos and don’ts will help you create strong, enforceable contracts that protect your business and its interests.

If you need help drafting a contract or reviewing an existing one, MontanaroLaw is here to assist. Our experienced team can guide you through the process and ensure your contracts are clear, fair, and legally sound. Contact us today at 516-203-1700!