Writing a good contract isn’t as difficult as some people think. The important thing is to include the appropriate information and to stay specific throughout the contract. A contract is not considered a legal document if certain information is not included. A contract that is written poorly can be damaging to one or both parties and so it’s important for it to be executed correctly as a legal document.
Identify the parties. Include complete contact information about the parties involved in the contract in the beginning of the document. Label each individual or party involved clearly with all applicable information in the beginning, so that the reader understands whom the contract is referring to throughout the document. Identify the parties using letters and/or labels. For example, refer to the homeowner as party A, and the contractor as B.
Describe, in detail, the service or product that is being contracted for. Detail what is expected throughout the duration of the work and be specific. If one or both parties is required to hold any insurances or certifications in order to enter the agreement, this information needs to be included and clearly outlined.
List the payment information next. Outline payment information clearly. If a down payment is agreed upon with subsequent payments due when certain elements of the project are finished, or if payments are to be made at timed intervals, these too should all be outlined in the contractual agreement.
Include information that clearly defines breach of contract by either party.
The signature and date line for all parties involved should be the final part of the contract.
Include more information and leave nothing out. It’s better to have too much information than too little. Having too little information may lead to problems for one or all parties later on.
Keep copies of all documents that are signed and make sure everything is dated. Keeping documents organized and filed for time line purposes later will help if a problem does arise later on near, or even after, the contract's completion