When preparing a contract, often there is a long negotiation process that takes place between parties. Our Contract Lawyers possess the skills to work through this process. This skill together with your lawyer’s experience in drafting contracts will put you in the best position when entering negotiations.
It is important to go methodically through the steps to ensure that all the relevant information is contained in a written contract. The contract should represent the full agreement between the parties. Your lawyer will also have to consider all the other factors that might give rise to a dispute and ensure that the contract covers those events.
Verbal contracts are legally enforceable, but harder to prove, which is why we recommend putting the agreement in writing.
Once the fact-finding stage has been done and established, the purpose of the contract terms and conditions can be clarified as the contract is drafted. The time it takes to draft a contract depends on the complexity and the uniqueness of the arrangement.
Understanding the context of the agreement is a crucial element. Experience drafting a contract that considers all aspects will get the best possible outcome. Proper consideration is given to the extent of the business relationship. In most instances, there are many scenarios to be considered and this is where a lawyer with litigation experience is also helpful so that the known types of breaches can be covered sufficiently in the contract to help prevent disputes.
The basic elements to form a contract are:
- Invitation to Treat
This is literally the “invitation” to do business together – eg., an advertisement - Offer
One party must make an offer - Acceptance
The offer must be accepted - Intention to create a legal relationship
It must be clear that the parties agree to form a legal relationship - Consideration
A form of payment is required to make the contract binding on the parties and this is typically by way of the payment of a deposit - The negotiation of the terms of the above and the execution of the agreement are important
