Tips for Drafting Business Contracts
Writing a strong, enforceable contract requires much more than simply putting terms on paper. It requires a clear understanding of the laws that govern contracts in Utah and ensuring that all necessary elements are included so your rights are protected and future disputes are avoided. There are also practical tips to follow that can help ensure your agreement is enforced by the courts if ever necessary. Below, one of our Utah business law attorneys explains some tips that can help you write your agreement.
Draft a Written Agreement
While oral contracts are legally recognized in Utah, putting an agreement in writing ensures that there is a clear and tangible record of the agreement. Having a written agreement also ensures that all parties are protected from misunderstandings, risks, and future disputes. Oral agreements are notoriously difficult to prove in court if there is ever a misunderstanding. All written contracts should include the following:
- All important terms, including the offer, acceptance, and consideration
- The full names and contact information of all parties entering into the agreement
- A detailed scope of work, delivery schedules, payment terms, and remedies if one party fails to fulfill their obligations
Use Simple and Clear Language
Language that is overly complicated in a contract can create confusion between the parties. This ensures that everyone involved is aware of their obligations and can prevent disputes in the future. Clear and simple language also ensures that no parties misinterpret the terms of the agreement. The courts also prefer contracts with clear language that is easily understood.
Include an Integration Clause
Integration clauses state that the written contract is the final agreement between the parties involved. It prevents any previous understandings or negotiations, such as an oral agreement, from being used in the future to change the written agreement.
Include Specific Expiration Dates and Deadlines
Contracts should clearly outline specific expiration dates or deadlines. This can prevent disputes regarding how long a contract is valid, and ensures that all parties have the same expectations in regards to timing.
Include Dispute Resolution Clauses
There is always the chance that a dispute will arise, even when an agreement is in writing. For this reason, all contracts should include a dispute resolution clause that outlines how disagreements will be resolved. This can include mediation, arbitration, or litigation. Including a dispute resolution clause can save all parties time and money if a dispute arises and help preserve professional relationships regardless of a dispute.
Contact Our Business Law Attorneys in Utah
The best way to ensure that you have a contract that protects your rights and will be enforced by the courts is to contact a Utah business law attorney. At AGS Law, our experienced attorney can include the necessary clauses in your agreement, ensure it contains all elements to be legally binding, and will help prevent business disputes in the future. Call us now at 801-477-6144 or fill out our online form to schedule a consultation with one of our experienced attorneys and to learn more about how we can help.
Source:
le.utah.gov/xcode/Title15/C15_1800010118000101.pdf
