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All contracts are agreements, but not all agreements are contracts. There are some requirements for a contract that makes it different from a typical agreement. A contract is more formal and legally-binding than an agreement. An agreement is a mutual understanding between parties. It does not require the enforcement of a third party, and it is not often put into writing.
A contract, on the other hand, can be legally enforced. In the business world of today, you can’t escape contracts. You can hardly buy anything online without signing some form of electronic contract. Those ‘I Agree’ buttons that you have been clicking without reading are binding contracts. You should read those terms, and when you are on the other side of creating the contract, you must do it right.
Now, you have a blank contract agreement to fill for your client, but you are lost about what should be present in the contract. You don’t have to frit. A contract agreement is easy to put together once you know the elements in the document. We have provided a guide on what you should have in your contract agreement.
A contract agreement is not as challenging to create as you think. A blank contract agreement will give you an idea of what is necessary with the legal terms and jargon you might not know. When you have a blank contract agreement to work on, here are the steps that you should follow to get the best agreement.
There are specific requirements that make your agreement a contract, and as a result of this, legally binding. You need to ensure that you fill in all those details in clear language. Try to keep your language as simple as possible to avoid any misunderstanding between you and your client. It is better to explain what a particular phrase means than assume that your client thinks about it the same way you do.
Some of the details that must be in your contract agreement are;
You should also check your spellings and ensure that you get them right. One misspelled word can pass the wrong message to your client. It could also mean a different thing from what the intended word. You should also check local laws and regulations like intellectual property protection for your industry to know if there are any clauses that you need to include.
It is not enough to follow the guidelines of a contract. You should ensure that even the smallest bit of information does not get left out of your agreement. The credibility of a contract can be destroyed because of a single word that is missing. As a freelancer, you should use precise words to avoid any misunderstanding.
For instance, the phrase ‘in 30 days’ could mean thirty business days or calendar days. If what you mean by thirty days is not explained in the contract agreement, your client could think you mean calendar days when you meant business days. The absence of this singular detail can lead to a misunderstanding. So, you see the importance of getting the details right.
Signatures ensure that your contract is binding. If you don’t get the right signatures on your contract, you do not have a contract. When you send your client a blank contract agreement, ensure that it gets signed by the time it returns to you. You should also sign and date your blank contract agreement. You should also keep copies of the contract in a secure location in case there is a dispute. One of the safest ways to keep your contract is to keep them online on the cloud.