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Include these sections in any contract you create

On Behalf of | Jan 6, 2021 | Business law |

Every good contract needs a few basics. Without them, the contract could be complicated or may not cover all the incidents that could occur between the parties who signed it.

In any good contract, you will want to have:

·       Payment terms.

·       The names of the parties.

·       The term/length of the contract.

·       Termination clauses, which discuss the ways either party can end the contract before its date of expiration.

·       Signatures of those who are agreeing to the contract.

Having these essentials in your contract will help it stand firm if it is ever taken to court.

Do you need the term of a contract if you don’t suspect an end date?

It’s a good idea to have a term length for the contract even if you think it will be ongoing. Having a date when it ends will also give you a time when you can renegotiate with the other party. For example, at the end of a lease, a landlord can renegotiate the cost of a rental. Similarly, a vendor can renegotiate for different rates based on their experiences with the other party.

With digital contracts, are signatures still required?

The short answer is, “yes.” Though the method of signing may be different, such as having the person sign digitally with a mouse, click a button with their name or type in their name, the contract still has to be signed. Usually, these contracts are signed remotely over secure servers.

These are a few things to think about as you build a contract for your business needs. Your attorney can help you create one that will work for your specific situation and the parties that are involved.