How to Write an Agreement Between a Person & a Business

A contract is a legal agreement between two or more persons or “entities.” An entity can be a business such as a corporation or limited liability company. Businesses have the capacity to contract, but they must act through one or more of their agents, directors or officers. An agent of the business may be an attorney hired by the business to negotiate contracts and enter into deals. The president or owner of a business is also a common agent. The written contract must contain all the agreed-upon terms and conditions of the parties.

Verify the business agent’s identity so that you are sure you are dealing with someone authorized and competent to enter into contracts on behalf of the business. If you are unsure of the agent’s authority, insist that the final contract be signed by the company’s owner, president or chief executive officer.

Finalize discussions and negotiations, and send a letter of intent detailing the essential terms of the contract. Address the letter of intent to the corporation and briefly describe the basis of the contract (sale of goods, performance of services, etc). Confirm the details of the agreement such as the price, quantity, time line and party obligations. Ask the business to read the letter, confirm the elements of the contract, and send a signed copy back to you.

Write a first draft of the contract. Use headings and subheadings to organize the information in the contract and make it easier to read. Include a definitions section to explain specific meanings of terms. For instance, you could include the term “Business” and define it to mean all the agents, officers, directors and interested parties for the business you are contracting with. No specific form or language is required; the contract must contain all the essential terms agreed upon during negotiations and spelled out in the letter of intent.

Review the contents with the business’s agent. Mark areas that need further clarification and places where more information is needed.

Revise the contract and submit a final draft. Each party must sign the contract. Provide copies of the agreement to each party.



About the Author

Based in Traverse City, Mich., George Lawrence has been writing professionally since 2009. His work primarily appears on various websites. An avid outdoorsman, Lawrence holds Bachelor of Arts degrees in both criminal justice and English from Michigan State University, as well as a Juris Doctor from the Thomas M. Cooley Law School, where he graduated with honors.