When a party of two or more decide to form an exchange with one another, they’ll want something which guarantees that everyone involved is aware of what’s taking place. This should include details such as who they’re exchanging with, what agreements need to be made, what happens should either party fail to hold up their end of the agreement and so on.
The perfect document to hold all of that important information would be a contract. This article is going to teach you all that you need to know in regards to how you should go about in creating your own contract template.
Elements of a Contract
When the time comes that you have to create a contract, then know that it’s important to learn about the basic elements. It is required for you to know what they are to ensure that whatever contract you end up creating is able to provide the parties involved with all of the information they need. This will make it much easier for them to understand the agreements they have made with one another and what they’re supposed to do if they want to terminate the contract or make certain changes.
And with that, here are the elements of a contract:
1. Basic information of the parties that are involved: This is obviously very important as the people that are involved in the contract will want to know exactly who they are dealing with. So what this means is that the parties involved in the contract will have to provide their basic information. While it’s required that they complete names, the contract might also need them to put in other pieces of information such as their addresses, contact details, job position title, etc.
2. Procedure for settling a dispute: This will describe how the parties involved in the contract will deal with any disputes they have with one another. Every contract will have its own sets of procedures that will point out how disputes should be handled as the means will all depend on how the parties involved wand to deal with them.
3. Contract termination: There is always the possibility that one party member involved in the contract would like to cancel the exchange altogether. Which is why it’s important that the document contains descriptions regarding how the contract can be terminated by either party.
4. Insurance: This should point out the insurance obligations of those involved in the contract.
5. Confidential information: It’s possible that the parties involved will either acquire or provide confidential information. Should that be the case, the contract will have to point out exactly how confidential information should be handled by those who are in the contract. Basically, you want to make sure that whatever confidential information that’s shared stays only within the boundaries of the parties that have made agreements with one another and that it never makes its way to outsiders.
6. Payments: If one party member has to pay for a product or service provided by another party member, then this should share just how much has been paid, who is making the payment, and the means by which he/she will be playing with.
7. Descriptions of what will be exchanged: The contract should make it clear as to what is exchanging from one party to the other. No matter what it may be, there needs to be an accurate description as to what’s being exchanged and other details such as the quantity in which it has to be provided in.
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How to Make a Contract
When you’re done familiarizing yourself with the elements of a contract, then you’re ready to learn the steps that will allow you to create one. Although learning the elements is important, you still need to know what you should use in order to create the document as well as how to make sure that it contains everything that it needs.
So knowing that, here are the steps that will allow you to come up with a proper contract:
1. Use Google Docs: One of the easiest things to use when making a contract would be Google Docs. While there are many other alternatives that will still allow you to create a contract, Google Docs is one of the more easily accessible ones that most people have opted to use. Before you can use it, you’ll first need to have a Gmail account. This is something that you can easily acquire by registering for one in Google’s main site. Once you have it, then here are the things that you need to do:
- Login to your Gmail account.
- Navigate your way to the Docs icon and click it.
- Select if you would like to start from a blank document or if you want to use a contract template.
If you like, you can also use Google Docs to create other types of documents. Just use the same process as you did when making the contract.
2. Creating the contract: Now that you know how to access and use Google Docs to make a contract, next is to make sure that it has all the information it’s supposed to contain. Here are the things that you’ll need to do:
- Check the identities of both parties: You will definitely run into problems if you don’t put in the right names of the parties who are supposed to be involved in the contract. To avoid any future issues, you simply need to check and see that those involved place all of the right basic information into the contract. Just remember that the most important thing to go over is their names as you don’t want anything misspelled or missing.
- Make all the terms and conditions clear: It’s important that those who go through the contents of the contract are able to understand all of the terms and conditions that have to be followed. So you’ll need to check if all the sentences are comprehensible to any of those who read them. Be sure that it’s clear as to what both parties should and should not do before, during, and after the exchange.
- Be sure that there’s a space for signatures: One’s signature shows that he/she has agreed to whatever is on the contract. So you’ll have to provide a space where the parties involved can put in their signatures to show that they have accepted whatever agreements, terms and conditions are in the document.
Tips for Making a Contract
- Have someone check the contract to make sure that there are no mistakes: You want whatever contract you end up creating to actually help in ensuring that agreements are kept and that there’s no way for the parties involved to easily go around them. This is why you’ll want to ask someone, specifically a lawyer, to help in checking the contents of the document. Although some lawyers may require you to pay a hefty fee, it’s still worth paying just to know that you’ve made a proper contract.
- Think about the format: Remember that you want the people involved to easily read and understand whatever information is one the contract. The best way of ensuring that they do is by picking the right format for the document. This means that you’ll have to consider the font and font size of the text, as well as how you should go about in the arrangement and alignment of the information in the contract.
Types of Contract
There are so many exchanges that take place and so many agreements that can be made that there are also just as many types of contracts to compensate for them. It’s always in your best interest to know what these different types of contracts are so that you’ll know which one you’ll need when the time comes. So with that, here are a few examples:
If you want to learn more about the different types of contracts there are and how to make them, then you simply need to go through our site and find the articles which have the information you need.
How many people can be involved in a single contract?
There isn’t necessarily a limit to how many people can be involved in a contract. So long as there are a number of parties that are involved in a particular exchange, you’ll have to name all of them to ensure that they are aware of what’s taking place and what agreements they have accepted should they choose to do so.
What happens if someone were to break an agreement in the contract?
If that were to happen, then you’ll need to check out the section of the contract that talks about matters regarding contract termination and see if the situation falls under anything that’s written on there.
A contract requires you to look into it carefully just to guarantee that all terms and conditions are fair for all the parties involved. So long as you make use of the information in this article, then you shouldn’t have a problem in creating a proper contract.