What things should every contract contain?

What things should every contract contain?

| Jan 6, 2020 | Firm News |

A great part of your duties as a Florida business owner likely entails negotiating contracts with your customers, suppliers, distributors, employees, etc. It is difficult to overstate the importance of these written commercial contracts. Your business may well rise or fall on them. 

FindLaw explains that business contracts represent enforceable legal documents that often contain multiple pages of provisions that “just plain folks” find difficult to understand. Your best interests dictate that you and your attorney draft contracts in plain English whenever possible, leaving out all unnecessary legalese. Doing so will enhance the likelihood that you and the other contract party/ies will not wind up in a breach of contract lawsuit. 

Simplicity, specificity, detailed information 

Given that virtually all contracts involve the sale or provision of goods or services, your contracts should clearly set forth the following: 

  • The contract parties 
  • Which party will provide what to the other 
  • When and how the providing party will deliver as promised 
  • When and how the receiving party will pay or perform as promised 
  • When and how both parties will handle any dispute that arises in the future 

To keep things as simple as possible, your contracts should contain sequentially numbered paragraphs, one for each issue covered. If necessary, you should also break up your contracts into lettered subsections regarding such things as delivery, payment, etc. 

Naturally each contract should contain as much detail as required for both parties to fully understand their agreement. However, try not to go overboard on the details. Sometimes providing too much information can be as confusing as providing too little. 

This is general educational information and not intended to provide legal advice.