Contracts are formal document that are made with an elaborate style and enough attention to details. These documents are generally enforceable by law and must be written in accordance to a format and correct methodology. This is the reason why experts are needed to draft contracts for most people. There are certain little points and things to be kept in mind while framing contracts.
The following points shall explain in detail the factors to be considered while framing contracts:
- Firstly it is important to mention the contract code/number etc in the very beginning of the contract since this number helps to categorise the particular contract.
- The next important thing to mention is the effective date or the date on which the contract is made or signed. The duration or term of the contract is another vital part of the contract. Most times it is advisable to give the termination date of the contract too.
- In any contract, it becomes quite necessary to use legal words such as ‘OWNER’,’LICENSOR’,’MANAGER’ etc depending upon the nature of the contract and the involved parties. The names of the parties and their titles must be preferably given together.
- The main body of the contract is one which consists of the terms, conditions, obligations, promises etc of the contract. This section can be divided into many sub categories.
- The first sub category deals with the financial aspect or the payment specifications. This part should be detailed in nature so as to avoid any confusion in the future.
- The certain details of the contract should be given point wise with enough explanation and detailing and this section of the contract can be quite lengthy and should be drafted with the help of a legal expert if possible.
- After giving all possible details, the involved parties as well as the witnesses must validate the contract by signing it at the end.