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How to Write a Contract

Scholasticus K
A contract is a very important aspect in the business world and it also tends to play a very important role in many domestic issues. In fact, it is the very basis for all the corporate and mercantile laws. Here are some points regarding the format of a contract that will help you draft one for yourself.
One must remember that any contract is a very sensitive legal document and one must be very careful while drafting it. Before you even start the process of negotiation and discussion, with the other parties, have a look at some of the sample contracts that have been prepared by famous lawyers for big corporations.
Some of the best ones are available on the Internet. Another very good way is to have a look at the samples that are available in law books or websites, or those that are blogged by lawyers and solicitors. Many websites nowadays, also offer excellent templates for most of the simple agreements.
Also, go through all the narrations and the bare acts that have been passed in your country and state, which are based on contracts. The contract acts that are passed by the governments, prove to be very resourceful. Here are some points to remember while preparing or writing one.

Description and Background

It is very important to describe the background of the contract, such as why the agreement was initiated and by which parties was it initiated.
At times, when the size of the transaction that is being conducted is huge, the minutes of the meeting are recorded and the signatures of the parties or their representatives are taken as consent to the minutes of the meeting. This practice is a very good method of recording the negotiation process, that takes place while concluding the consideration.

Details Related to Finance

The details related to the financial issues are very crucial when you write a business contract. The details regarding taxes, duties, installation and labor charges, if any, need to be mentioned in it. Often, the breakup of the total consideration is also given.

Phrasing the Appropriate Sentences

Some of the paragraphs and sentences regarding the penalization, breach, and dishonor are to be phrased very carefully, as many sentences and clauses can be interpreted differently. This proves to be very difficult, as many sentences are bound to have different meanings.


It is very important that the details related to the time and date of the execution of contract, exact location, etc., are highlighted while phrasing the document. The last part is where the signatures and seals of the parties are needed.
The last function that remains, is authenticating the contract. The rules regarding authentication, differ for almost all nations and also for some of the jurisdictions.
One of the very important aspects of writing contracts, is maintaining the tone of the language and also having a good phrasing. For example, when you write employment agreements, you need to have a polite tone, but have a firm approach towards all the rules and regulations mentioned.
One must remember that it is not similar to writing an essay or a simple blog. The tone, flow, and firmness of the document also matters a lot.