5 things you
need to know
about
Drafting Commercial Contracts
- Businesses create contracts in lots of ways, including by email or even on a phone call. As a business owner, you need to know what you’ve agreed with other parties. For this reason, it’s best practice for businesses to put their contracts in writing — a process known as “contract drafting”. Contract drafting is one of the main tasks that lawyers perform for businesses.
- A good business lawyer will generally work with a base contract (or “precedent”) that has been created for a particular category of commercial agreements. The lawyer will then adapt the contract to address the specific requirements of the client and its business. This approach gives you a high-quality document at a reasonable cost.
- It’s important to choose a lawyer who has experience drafting the type of contract you need. Working with a specialist should mean that the quality of the contract is higher and the cost of producing the document is reduced. If possible, choose a lawyer who will draft your contract for a fixed fee. This arrangement will incentivise the lawyer to work efficiently.
- Remember that contract drafting doesn’t need to be overly complicated and contain lots of jargon and complex language. Your lawyer should create a straightforward contract that can be understood by all parties.
- Once your contract has been drafted, it’s likely that the other party will want to negotiate the terms of the agreement. A specialist contract lawyer will also be able to assist you with negotiations.
