Contracts: Best Practices

Name: Contracts: Best Practices
Author: Michele Hagan

Learn how to use some best practices in contracting

Preview the first lesson free — get full access to all 3 lessons.

Course: On-Demand

(air whooshing) When it comes to contracts, clarity does matter. You have a better chance of avoiding disagreements and contract disputes when you clearly express the terms of your contract. Putting a contract in writing is the best way to ensure clarity. Most contract disputes arise because the parties failed to state the contract terms using simple and plain language. Avoid using slang, abbreviations, ambiguous words, or too many legal terms in your contract. Leave the formal and technical legal language to the lawyers. Each contract terms should be clear and easily understood. Use short and complete sentences to express each term. Each paragraph within the contract should be complete. Each term of the contract should stand alone. And before you sign the contract, make sure it includes all the terms agreed to by the parties. Be clear and definite. Avoid using vague wording in a contract, as it can create confusion and disagreements over the meaning of the contract term. Wording such as "may agree to pay" appears vague and indefinite. May is permissible and allows the person to pay or not pay. Use "shall pay" instead to ensure payment. Another example includes using wording such as, salary is commensurate with experience or TBD. In an employment agreement, these phrases are simply not definite enough and will lead to disagreements. Instead, clearly state the hourly wage or salary in the employment contract. Also, be careful of using phrases like, on Sunday, using descriptive words is key. Include details such as, I lease my two bedroom apartment at 235 Lake Street in South City, rather than, I lease my apartment in the city. If you describe the leased property as a two-bedroom apartment in the city, it could mean any two-bedroom apartment in any city. If you are unsure about your wording or a term, ask a colleague or friend to read your contract, to see if they have any questions about what you included. If you have questions, rewrite the terms so that it is clear. Include all agreed terms. Typically a contract is the entire agreement. If a term, prior discussion, or any other information is missing, it is assumed that the parties intended to exclude it because it was not included in the signed contract. Be sure to include any prior discussions relevant to the contract by referencing text messages or emails within the contract. Using standardized forms and templates. Many business owners and individuals use standardize contract forms and templates such as leases, buy-sell agreements, or business incorporation kits that can be found online or from trade associations and office supply stores. Keep in mind that these contracts usually provide very general terms that may or may not apply to your situation or comply with your local laws. If you use a standardized form or template, be sure to tailor the contract specifically to your situation and in compliance with your local laws.

Beginner Provider : Michele Hagan 3 Lessons · 5m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

You should be prepared to take every necessary step to make sure that your contract clearly states all the necessary information. A lack of clarity could cause problems later on, such as a contract dispute, which may lead to costly litigation.

What You'll Learn

Ensure your contract clearly states all the necessary information
Apply best practices for contract clarity to avoid disputes
Review contracts to identify gaps and potential issues
Interpret and prepare contracts with accuracy
Negotiate contract terms with attention to compliance
Test your knowledge of contract best practices

Key Takeaways

You should take every necessary step to make sure your contract clearly states all the necessary information.
A lack of clarity in a contract could cause problems later on, such as a contract dispute.
A contract dispute may lead to costly litigation.
The course covers contract clarity, contract review, and a knowledge check.
The course builds skills in contract analysis, compliance, interpretation, negotiation, law, and preparation.

Frequently Asked Questions

What does this course cover?

The course covers contract best practices through lessons on Clarity Matters, Contract Review, and a Test Your Knowledge section, emphasizing taking every necessary step to make sure a contract clearly states all the necessary information.

Why does contract clarity matter?

A lack of clarity could cause problems later on, such as a contract dispute, which may lead to costly litigation.

What skills will I gain from this course?

The course develops skills in Contract Analysis, Contract Compliance, Contract Interpretation, Contract Negotiation, Contract Law, and Contract Preparation.

How is the course structured?

The course is organized into three lessons: Clarity Matters, Contract Review, and Test Your Knowledge.