What Is a Basic Agreement?
In legal and business terms, an agreement is a common point where parties agreed to exchange things like goods and services. Under some laws, only a few parts of the agreement must be written. It’s still a good idea to have a written agreement for other business transactions since a handshake agreement is not acceptable by the law.
How to Make a Basic Agreement
You can make your own contract agreement as easily as a legal person does it. We have made a step-by-step list to guide you to make a basic agreement. Stick to our list and you'll be done in no time.
1. Choose Your Template
Before starting to draft your agreement, look for a template that will help you in crafting an effective basic agreement. Though you can opt to make your simple agreement in a blank sheet, using a template will make your job more convenient. With your template, you'll spend lesser time writing down your agreement allowing you to spare your time in other significant tasks.
2. Name the Parties
After you have decided whether to use a template or not, you can now start drafting your business agreement. First, name the parties that are involved in your agreement. Some have written down the representative of a company, institution, or organization instead of the name of the entity.
3. The Scope of the Work
When you make the legal agreement, start by vividly defining what is the scope of work. The scope of work is the division of work that each party will perform under the agreement's term. The scope of work is typically broken out into specific duties to be filled by the parties.
4. Length of the Agreement
Agreements are typically signed for a certain timeline and schedule, such as one year. This timeline will dictate the period when the agreement starts to be effective and when will the effectivity ends.
5. Managing Disputes
Not all disputes in your sample agreement can be taken to the court. Have a mediator decide instead of taking the dispute to an attorney. Only having a mediator does not mean that it is not legal, make the contractor and client decide if they will allow a mediator to be in between when a dispute arises.
6. Time and Payments
By the time, we mean that the moment when the payments must be done. There should be a timeline in your agreement that will dictate the span of the period it is effective. Having a timeline in your agreement will keep the contractor and the client on track when the payment agreement ends. Since payment is part of the obligation, set who pays when to whom.
7. Signature and Date
Finally, make space for the signature. Include the name of the signee once the agreement or contract signing comes in. Make sure to add the date with the agreement is signed.