What is a Contract?
A contract is a legal document that indicates the agreement between two parties in terms of business, specifically involving employment, services, or selling of goods. A valid contract usually involves three things, a mutual understanding between the two parties, an offer and acceptance, and a formal consideration.
How to Create a Contract in Microsoft Word
Whatever operating system you're using, you might find that the most commonly used document processing tool is Microsoft Word. You can use this application for writing various documents such as business agreements, proposals, and contracts. If you wish to learn how to make your own contract using Microsoft Word, kindly refer to the guidelines provided below.
1. Think of a Negotiable Offer
An offer has to have three elements, namely communication, commitment, and definite terms. This means that in order to make an offer, you will need to communicate in either written or verbal form, as long as both parties understand it. The offer should involve a commitment so that both parties will be bound to the terms of the business or sales agreement. And lastly, the terms set should always be valid, fair, and definite.
2. Take Notes from the Negotiations
When negotiating with the other party, it is important to take down notes to keep track of the discussion and the suggestions given. This can be helpful if a lawyer is not present during negotiations (which happens most of the time) since it can be used as a supporting tool in case the contract is challenged. Also, having notes can help provide you with key elements when writing a simple contract.
3. Open Microsoft Word and Set Up the Document
Launch Microsoft Word and start a new document by clicking on the New button. You may select Blank Document if you prefer to start entirely from scratch, although you may also take advantage of contract templates in Word that already contain text placeholders. Regardless of which, you'll be presented with a blank document that you'll be using to create your contract.
4. Identify the Terms and the Termination Clause
An effective contract should specify the terms of the agreement such as the goods or services involved and the expected return. Also, you may want to include details about the consequences if the terms aren't completely met. Aside from the terms, you should also include a termination clause especially for contracts involving long periods of time. This clause provides the parties with an exit without breaching the contract. Or, you may create a separate termination contract.
5. Include the Representative's Names from Both Parties
Of course, a contract agreement should indicate the names of the representatives from both parties and they should be written somewhere at the bottom part of the document. Below their names should be their respective titles to distinguish the party that is initiating the contract with the one that is agreeing to it. Lastly, provide enough space for the parties to affix their signatures, and this is usually right above their names.
6. Print your Contract
The last step involves printing your legal agreement but not before checking to see if errors need to be fixed. The only thing you need to take note of is that your printed output should be legible to both parties, so always print it in the best quality. Also, you may need to further legalize your contract by having it notarized, but this is actually not required.