Preparing & Finding Legal Contracts

Of course! Any written agreement or contract signed between two individuals – as long as it falls within the perameters of the law – is legally binding. That doesn’t mean that you shouldn’t have a certified attorney draw up your contracts for you, but if you don’t want the added expense, then you are perfectly within your rights to draft your own contract. Contracts can include employment contracts, work-for-hire contracts, non disclosure agreements and non-compete contracts.

There is also a third option: finding sample legal contracts online. As long as they are not copyrighted and are available for public use, you can copy samples of other business’ contracts and use them as your own. This might help to keep you out of legal binds, and will ensure that you’ve covered all of the most important points. Here are some places you might find sample legal contracts:

www.allbusiness.com – This is a great resource for entrepreneurs and law students who want to know more about how to cover all areas of the law. You can find sample contracts for almost any type of situation, and you can further modify those contracts to suit your own needs.

www.contracts.onecycle.com – This is your one-stop location for all of your contracting needs. They offer contracts of all types, including leasing contracts by state, stock option agreements, limited liability company (LLC) agreements and more!

www.morebusiness.com – This is another excellent resource for contracts, and really for all things business. They have contracts that are easy to search, and are easily customizable for your own needs or benefits.

If, however, you would rather start from scratch, here are the key points that must remember when drafting contracts or agreements.

1. Introduction

All contracts should have a simple introduction in which both parties record their names and the dates of signing the contract. It should expressly state what the contract is for, who it binds, and the conditions for breaking the contract. The introduction should not include extensive detail, but it should give a comprehensive overview of the substance of the contract.

2. Three or More Sections

The contract should be divided into carefully delineated sections that discuss specific facets to the agreement. For example, in an employment contract, the sections might include wages, hours and benefits. A property lease contract might include term, rental, use and repair. As the author of the contract, it is your job to make sure that all of your bases are covered and that every stipulation is included in the contract.

3. Exceptions

Exceptions to any section in the contract should be highlighted in bold or italicized print and should include every such exception that you deem to be viable. If you fail to accurately state the stipulations, you might find yourself in a nasty situation that must be determined by a judge in civil court.

4. Compliance with Law

As an addendum to your contract, it is prudent to include a Compliance With Law section that informs both parties that every section of the contract is subject to the law of the state or country in which you reside. For example, in a property lease agreement, you might say: Tenant shall comply with all laws, orders, ordinances and other public requirements now or hereafter pertaining to Tenant’s use of the Leased Premises. Landlord shall comply with all laws, orders, ordinances and other public requirements now or hereafter affecting the Leased Premises. This makes it clear that both parties are subject not only to the contract, but also to applicable law. This way you don’t have to include every facet of property law.

5. Final Agreement

A summary of the contract should be included at the end, and should state that the signing parties have read, agreed to, and understand all sections of the contract, and that all signing parties have had an opportunity to have the contract looked over by an attorney. This is important because it keeps all signing parties from claiming ignorance or duress (signing under threat).

6. Witnesses

This is a very important and oft-overlooked factor in legal contracts and legal agreements. Carefully research your state laws that govern the enforcement of contracts and make sure that you are not required to have witnesses sign as well. Most states, for example, require that at least two witnesses sign legal wills before they can be made valid.

Tips To Remember:

1. Even if you write your own contract or borrow one from the Internet, it is always best to have an attorney look over it.

2. Any vague or questionable areas of the contract should be more clearly stated to avoid confusion or a possible loss at your expense.

3. A legal contract that gives outlandish or grossly impartial requirements will not stand up in a court of law. To avoid this, make sure that the terms of the contract are fair and reasonable.

4. If a provision of your law is in direct opposition to a federal, state or local law, the laws will supercede the contract, so make sure that you are aware of the laws governing the contract.