How to Write a Master Agreement?
There are many types of master agreements out there, varying from lease settlements to franchise agreements, even supply, and purchase contracts. However, having a general concept of what these are and how they work gives you an idea of writing them. To help you out even more, here are a few tips you can use:
1. Make Sure It's Understandable
Use simple words in your sample agreement; you want your client to understand the deal, not scratch their heads over the words "intricate" and "henceforth." That's a bit of an overstatement, but you get the picture, right? Using simple words and direct sentences that give the point immediately is best.
2. Address Both Parties Properly
This isn't difficult to do, but it is very important. You want to make sure that both you and the client's full, legal name, legal address, contact numbers, email addresses, and companies are included in the basic agreement. Do a bit of background checking if you aren't very confident with the information given as a bit of paranoia will outweigh the amount of time and money wasted on a person who doesn't keep their end of the agreement.
3. Include a Disclaimer
Disclaimers are there to inform the client what they are about to enter and the obligations they'll need to meet; for example, tenants receive a disclaimer in the simple agreement which states that they are required to pay the rent before a certain number of days or they could be evicted, while a franchise disclaimer, on the other hand, may indicate that they have to assert the original owner's stipulations on working hours and products sold.
4. Indicate Payment Obligations
Somewhat similar to the disclaimer, an indication of payment obligations is the record of how much will be paid, what is being exchanged, what the supply and demands are for both parties, and deadlines for payment. Though they may also be included in the Terms and Conditions section, it's best to give them their own section to give more room for negotiation.
5. Discuss Terms and Conditions
This is the most important part of any written, legal agreement: the Terms and Conditions. This section sets the boundaries for violations, validates the disclaimer, gives repercussions to unrequited services, and sets grounds for how the partnership should work. What the Terms and Conditions are of your agreement is up to you and your client, but here are a few suggestions:
- Disclaimer and Payment Obligations - these can count as a term and condition. However, if you've made a separate section just for these two, then you can either just explain the repercussions of noncompliance or not at all and just leave them on their own.
- Confidentiality - statements that talk about confidentiality between business partnerships can make transactions smoother knowing that both you and the client will keep details between you two.
- Compensation - these terms help resolve problems before they become lawsuits.
- Termination - these are the terms and conditions that talk about violations and grounds for ending the agreement altogether.