One of the biggest expenses that you have to deal with in a business is the legal expenses. One of the things that a lawyer will usually create for you is a legally binding contract. If you are a starting company, however, cutting costs whenever possible is important. You can do this by creating your own legally binding documents. Here’s how.
- Search for templates. First of all, you should understand that you do not need to create your own legally binding document from scratch. There are actually plenty of legal document formats that you can download from the Internet or which you can buy from legal libraries and shops in CD form. Simply search for templates about the specific type of contract that you need. Almost every contract already has a template, whether it is an affidavit of loss, a memorandum of agreement, et cetera. Using pre-formatted contracts is not only easy and convenient but also ensures that all you get the document format right.
- Terms of the contract. Next, make sure that you include the specific terms of the contract. While there will usually be blanks in the formatted contract documents about where you can put the specific terms of the contract, it is still important that you double check. The terms of the contract are the conditions that must be met in order for the contract to be legally binding between the two parties. Any breach in the terms of the contract can lead to a termination of the contract.
- Essential components. Because the legal contract is a formal document, there are certain essential components that you need to put in. these are pretty basic, but with one of these components missing, your contract will no longer be valid. This includes the type of service that you are actually offering, the acceptance from parties that the offer is sought, the payments and considerations, and the acknowledgment that signing and agreeing to the contract means that both parties have entered into a legally binding relationship. The signature is important as well. If you are writing an online contract, confirmation emails with digital signatures will do.
- Contingencies. Next, you should also create and add contingency clauses or provisions in your documents. The contingency clauses will give you leeway or some room to maneuver the legal relationship in case something goes wrong. Usually, the contingencies are the sub-conditions that must also be fulfilled in order for the contract to pull through. For example, if you are purchasing a home, a contingency clause that you can include is that the house must pass a home inspector’s approval, otherwise your obligation to purchase the house will automatically terminated. Try to think up of all the possibilities in the contract that you are entering and turn these into contingency clauses.
Finally, make sure that you print out the contract itself and that you create several copies. There should be a copy for each party involved in the contract, and you should make sure that you have your own duplicates that you can furnish in case there are breaches in the contract and you will need to use the document as proof.