How to Create Contracts in PDF
Contracts are legally binding agreements. When two people decide to agree on certain things, they both acquire rights as well as duties as being laid down in the said contract. The basic elements of a contract include voluntary, deliberate, and legally binding.
In some business firms, contracts are written agreements between an employee and an employer. But there are agreements that can also be spoken or implied. Aside from that, there are certain elements that must be met for a contract for it to be enforceable, and in the absence of even one of these elements, the contract will be void and both parties will be excused from any duties or responsibilities.
We know that drafting a contract will never be easy. So for you to be guided, consider these tips provided just for you as you utilize our editable contract templates that are available in all versions of PDF.
1. Bilateral or Unilateral
These are two types of contracts. You have to understand each for you to decide what type of contract are you pursuing. A bilateral contract involves two parties who made a promise to each other. While a unilateral agreement involves one party who makes a promise to another party in exchange for an act by the other party.
Determine whether or not the contract that you are in now is a unilateral or bilateral agreement. After that, decide what contract templates to use.
2. Offer and Acceptance
In both types of contracts, offer and acceptance must be present. There must be a proposal by either party to which an agreement is formed. Other than that, an acceptance must be there to ensure that the agreement is voluntary and deliberate. These two things are primarily important elements that should be present in a deal, otherwise, there’s no contract made.
3. Competence is Needed
When signing a contract, make sure you are mentally capacitated and already in your legal age. This is important so both parties can surely understand what contract is all about. Aside from that, a person must not be under the influence of alcohol or drugs when signing a contract. Lest the contract may be void and not valid.
4. Legality and Consent
Whether you’re an employee who promised service to the employer, or a vendor to your vendee, the contract must be legal for it to be enforceable. In that sense, consent from both parties must be mutual. However, if the consent is obtained on the basis of stress, due to duress or under the influence of alcohol and drugs, then the party's consent is considered involuntary; therefore, the contract is void.
5. Must be in Writing
A written contract is required for all transactions involving construction, rental, loan, termination, and other agreements in which performance cannot be completed within a year after signing a contract.
Whether you’re into business contracts or government contracts, the agreement should be in writing for it to be legally enforceable.