How to Write a Legal Agreement Contract

Contracts help parties understand the nature of an agreement and resolve disputes should they arise.

Contracts need two things to be legally binding: mutual agreement and an exchange of things of value (called “consideration”). Not every contract must be written, but writing a contract is preferred, as it presents clear evidence of the agreement between the parties. When writing a legal agreement, remember to keep the language clear and easy to understand. The document must contain every aspect of the agreement, but it must be written in a way that both parties fully understand the obligations and implications of the agreement and can use the document to resolve matters should they arise.

Instructions

1. Title the document “Legal Agreement Between [Party Names].” Beneath the title, state the date the agreement was entered into and list the names and addresses of the parties.

2. Use section headings and subsections to organize the information in the contract and to make it easy to read. For example, if the agreement is to roof a house, one section might be titled “Roofer’s Obligations.” Under this section, subsections might include the time needed to complete the work, whether the roofer is to supply all materials, when the roofer is to be paid, and other information related to the roofer.

3. Fill in the information regarding the contract in each subsection. No magic words are required; you must, however, draft the agreement so that it states exactly what the parties intend. If the parties intend a specific brand of paint to be used, for example, beneath a subsection titled “Paint” or “Materials to Be Used”, state what brand, color, and quantity of paint is required.

4. Review the contract with the parties prior to having each party sign. Allow the parties to note areas that are ambiguous or areas that need revision. Revise accordingly.

5. Provide copies to each party. Ask each party to sign each document. Keep one copy of the document for your records.

References

• Nolo: Make a Legally Valid Contract
• Duhaime: How to Write a Contract

Resources

• Read this Article in Spanish