Written contracts are super essential when it comes to two parties making a deal. The splendour is that they are very easy to sign plus it offers a tangible evidence of an agreement. Nonetheless, many people may not know how to write a contract even when they need one. Well, if you are one of them, then this article will teach you the basics of writing contracts. So, read through and pick up some pointers!
Part 1 Steps for Writing a Contract
Step 1: Start with basic information
First you need to write the date at the top of the page, and then write the companies' name or the names of the contracting parties. You can use the format "This contract is between….. and …"
For a contract between businesses or between an individual and a company, it should entail the full legal title of the business as well as the designations. You should also include other identifying information such as person's title.
Step 2: Detail the exchange of consideration
Use clear and readable language, which is easily understandable to describe the goods being exchanged. You should use short and clear sentences arranged into paragraphs and you can number and name the paragraphs. You should also use plain language rather than legalese.
Write clearly what one party promises to deliver and what the other is to give in exchange. If service is part of the deal, state the services to be provided and who is supposed to offer them.
If you are selling a real estate, state the legal description and the exact location for the property. State also the colour, size model, make, delivery data and any other info while selling goods.
Step 3: Apply addenda when necessary
You can add an addendum if you forgot to detail something in the contract or if the details would be cumbersome to include.
Step 4: Add a confidentiality clause
If you do not want the other part to share the information to other people you can add a clause which forbids the party from disclosing the information.
Step 5: use a clause to show how the contract will be terminated
Specify the duration of the contract. If it is only a one-time thing, indicate that it will be terminated after the exchange of services. If a contract entails an ongoing service, state that either party should give a 30 days' notice.
Include details on what will happen if someone breaches the contract. You should also add dispute resolution terms that specify how the breach will be handled.
Step 6: Ensure that the contract is in accordance with the law
Research which state and federal laws might pertain to the contract and make sure that it is legally enforceable.
Step 7: Reserve the last page for signatures and date
Offer spaces for each name and signature as well as a space for the date when a contract will be signed.
Part 2 The Best Contract Signing Platform
If you want to sign your contracts fast then you need a software that can deliver signatures in much the same way traditional signatures are done. Talking of e-signatures, SignX is one such powerful tool which supports management of documents electronically. It supports the signing and filing of documents electronically thus offering a simplified document management. SignX plus comes with a lot of benefits and features such as:
- Multi-users admin helps you add or remove users easily
- You can keep signatures moving and monitor the deals from the comfort of your office.
- It gives you a chance to apply eSignatures that are enforceable as the handwritten ones.
- It offers commercial SSL protocols to help keep your documents safe.
- You can easily edit, personalize and modify your documents.
- You get alerts every time your document is opened, read or signed.
- You can get an overview of all your documents, e.g., the ones that are awaiting approval, the ones viewed by the recipients and the completed ones.
- You can ensure a secure end to end interaction by securing your documents a unique two-factor authentication access code.
- You can optimize workflow by streamlining the work process and drive the documented productivity. If you want to sign documents in a specific order, then SignX got you covered.
- You can upload or make your signature with the signature maker device.
Now you know how to write a contract and how to sign your contracts fast. You can now ensure that all your contracts are legally binding. If necessary, seek the services of a lawyer to ensure that everything is covered.
Part 3 Comparison between Written Contract and Electronic Contract
Written Contract
Advantages:
- The parties involved do not need any software or program to sign them.
- Written contracts help save on energy consumptions.
- It is hard for another person to sign a contract for you since your contract is unique.
- Written documents are easy to review. It is hard to miss a page since you are just flipping, unlike the electronic contract where you can miss a page as you scroll down.
Disadvantages
- The written contract is cumbersome, costly and inefficient. Preprinted papers must be accounted for all the time whether they have been used or not, and they have to be kept in the file for several years.
- Storing the written contracts may consume a lot of space in your office. You have to keep filing them.
- In case of an accident, such as fire, there are higher chances of losing the signed contracts.
Electronic Contract
Advantages:
- Electronic contracts are easy to store and file; they do not take much of your office space.
- Costs and time are saved. You do not have to spend on printing and buying of papers.
- Electronic contracts are instantly available and can be used across the entire firm
Disadvantages
- You will require to install or purchase a tool for signing the contracts.
- You have to restrict your documents with a password to ensure that a third person does not sign the contract without your consent.
- It is easy to copy electronically saved signatures to sign other documents without the approval of the user.
