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Contracts: Brief Introduction to Contacts & Drafting

Posted by Jonathan Gasso | Jun 24, 2020 | 0 Comments

Here are some actions to take when drafting a contract, as well as some helpful guidance to keep in mind.  Prior to drafting, client(s) will send deal points and together we go over “what if” scenarios.  We address their expectations as well as worst case scenarios. Up to this moment your sole priority is the client.

If the client has only had preliminary conversations with the other party and there are no deal points at this particular time, almost always advise the client to not make the first offer. You can valuable insight or information by allowing the other party to make the first offer. Additionally, you may avoid insulting the other party with your first offer if the other party feels the offer is too low or high. Furthermore, by allowing the other party to make the first offer you are delay negotiations for time you need.

When drafting, write short active sentences and stay away from certain terms. This will allow you to be clear and precise. Write the full legal names of the parties, the subject matter, price, and the time of performance. These four items of the contract should not change. For the reminder of the contract outline it multiple times and write anything that comes to mind in a notepad next to you as you am drafting.

Remember, write the Contract for a Judge. Ask yourself, what will your Contract tell the Judge if any disputes arise? Will your Contract have answers for a Judge presiding over the dispute? A properly enforceable contract should lead a Judge to rule on the side of the non-breaching party.

Basic principles of a contract are, 1) Formation of the contract, 2) the Enforceability of the contact, 3) Breach of the contract, and 4) Damages if a party is harmed by a Breach of the contract. Keep these principals in mind when you write or read a contract. It takes time and patience to create an enforceable contact. Call us, we provide peace of mind.

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