How To Properly Draft Contracts: Tips From Professional Lawyers

How To Properly Draft Contracts: Tips From Professional Lawyers
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Drafting contracts can be a complex and daunting task, especially if you are not familiar with legal jargon and terminology. However, with the right guidance and knowledge, you can learn how to properly draft contracts that protect your interests and minimize the risk of disputes. In this article, we will share some valuable tips from professional lawyers on how to draft contracts effectively.

1. Clearly Define the Parties Involved

One of the essential elements of a contract is clearly identifying the parties involved. This includes not only the names of the individuals or entities but also their addresses and contact information. By providing accurate and up-to-date information, you ensure that there is no confusion or ambiguity regarding the parties’ identities.


This Agreement is entered into between XYZ Corporation, a Delaware corporation with its principal place of business at 123 Main Street, Anytown, and John Doe, an individual residing at 456 Oak Avenue, Anytown.

2. Include a Clear and Concise Statement of Purpose

Every contract should have a clear and concise statement of purpose that outlines the primary objective of the agreement. This statement helps both parties understand the intention behind the contract and sets the foundation for all the obligations and provisions mentioned later.


The purpose of this Agreement is to establish the terms and conditions under which XYZ Corporation will provide consulting services to John Doe for the development of a new marketing campaign.

3. Define the Scope of Work

It is crucial to define the scope of work in a contract to avoid any misunderstandings or disagreements in the future. Clearly outline the specific tasks, deliverables, and timelines that the involved parties are responsible for. This helps manage expectations and ensures that both parties are on the same page.


XYZ Corporation agrees to provide the following services as part of the scope of work: market research, strategy development, content creation, and campaign implementation. The timeline for completion of these tasks is outlined in Exhibit A.

4. Specify Payment Terms and Conditions

Another essential aspect of a well-drafted contract is clearly outlining the payment terms and conditions. This includes specifying the amount, frequency, and method of payment. It is crucial to be specific and leave no room for misinterpretation to avoid disputes related to payment.


John Doe agrees to pay XYZ Corporation a total fee of $10,000 for the services rendered. The payment will be made in three installments of $3,333 each, due on the 1st of each month, starting from the effective date of this Agreement. The payment shall be made via bank transfer to the account specified by XYZ Corporation.

5. Include a Confidentiality Clause

In many contracts, it is essential to include a confidentiality clause to protect sensitive information shared between the parties. This clause ensures that both parties agree to keep certain information confidential and not disclose it to any third parties without prior written consent.


Both parties agree to maintain the confidentiality of any proprietary or confidential information disclosed during the course of this Agreement. This includes but is not limited to trade secrets, business plans, customer lists, and financial information. The parties shall not disclose such information to any third parties without the prior written consent of the other party.

6. Address Dispute Resolution

Including a dispute resolution clause in your contract can help minimize the chances of costly and time-consuming litigation. This clause specifies the method and procedure for resolving any disputes that may arise between the parties, such as negotiation, mediation, or arbitration.


Any disputes arising out of or in connection with this Agreement shall be first attempted to be resolved through good-faith negotiation between the parties. If the dispute cannot be resolved amicably within 30 days, either party may initiate mediation. If mediation fails, the parties agree to submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association.

7. Consider Applicable Laws and Jurisdiction

When drafting a contract, it is crucial to consider the applicable laws and jurisdiction. This ensures that the contract is enforceable and that any disputes will be resolved in the appropriate court or jurisdiction.


This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. Any legal action or proceeding arising out of or relating to this Agreement shall be brought exclusively in the federal or state courts located in the State of Delaware.

8. Use Clear and Simple Language

Avoid using complex legal jargon and terminology that may confuse or intimidate the parties involved. Instead, use clear and simple language that is easily understandable by all parties. This helps prevent misinterpretation and ensures that everyone is on the same page.


The parties agree that any modifications or amendments to this Agreement shall be made in writing and signed by both parties.

9. Seek Professional Legal Advice

While these tips can help you draft contracts more effectively, it is always advisable to seek professional legal advice. Lawyers specialize in contract law and can provide valuable insights and guidance specific to your situation.


Drafting contracts can be a challenging task, but by following these tips from professional lawyers, you can ensure that your contracts are well-drafted, protect your interests, and minimize the risk of disputes. Remember to clearly define the parties involved, state the purpose, define the scope of work, specify payment terms, include confidentiality and dispute resolution clauses, consider applicable laws and jurisdiction, use simple language, and seek professional legal advice when needed. By doing so, you will be well-equipped to draft contracts that are clear, enforceable, and beneficial for all parties involved.

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