Definition of a Pro Forma Contract

Pro forma contracts are not binding until they are completed and signed.

Many do-it-yourself law books, such as those by Nolo Press and other publishers, provide samples of pro forma contracts. These documents raise interesting questions as to what separates a real contact from a pro forma contract.

Definitions

"Pro forma" is Latin for "in the form of" or "for the sake of form." A pro forma contract is a document that is in the form of a contract. Although it is in the form of a contract, some elements are missing that need further clarification.

Features

Missing elements are specified by blanks or a similar notation. These blanks may refer to terms that need to be negotiated or specific terms that can be easily filled in. Once the missing terms are filled in, the document will be a complete contract with a stated offer, acceptance, consideration and terms.

Example

The state of Tennessee website shows a sample pro forma contract between a state agency and a contractor. The names of the parties and scope of services are blank.

References

• USLegal: Definitions
• Yuni: Latin Phrases
• tbr.Tn.State: Contract
• The 'Lectric Law Library: Contract