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Dallas Business Attorney Offers Advice for Drafting Clear Contracts

Dallas business attorney, Richard “Ric” Armstrong, offer insights to entrepreneurs and owners about how to create contracts that are clear-cut and understandable for all parties.

When drafting a business contract, the language you use is vital. Contrary to popular opinion, contracts shouldn’t be shot up with legalese and gobbledygoop. The point isn’t to baffle the parties into submitting to your will. Quite to the contrary! It is to build trust and faith. You want to create a clear, simple scaffolding for the arrangement, so that everyone gets on the same page about what’s expected and required.

Ambiguity in a business contract can be a big problem. It can lead to misunderstanding and legal entanglements – which can be stressful and expensive down the road. When drafting a business contract, bear these tips in mind to clarify your language and intentions:

1.    Prepare an outline. As you get ready to draft the contract, start with an informal outline of the business agreement as you understand it. Our legal team can offer insight into how to draft a clear contract that meets all points of the outline.

2.    Ensure consistency. Use the same language to refer to each party throughout the entire contract. For example, in case of a rental contract, use the term “Lessee” consistently throughout to refer to the party who will be doing the renting. Don’t switch to calling them something else three pages in.

3.    Use recitals. Recitals (usually phrases at the beginning of a contract that start with “whereas”) aren’t absolutely essential, but they do provide background information that can help make the contract easier to understand to an outsider. (Again, the key point here is CLARITY. Don’t just throw around fancy words like “whereas” because they sound like they belong in a contract. Do so because they make the agreement understandable and guide the reader through the thought process underlying the document. The power of contracts is that they disambiguate the relationship, so it functions better!)

4.    Define important terms. Your business contract should be clear about your definition of any key terms or phrases, explicitly spelling out how your business defines them so that there’s no room to misunderstand what you mean.

For help drafting a clear and concise business contract, contact an experienced Dallas business lawyer with Armstrong The Law Firm, P.C. at 972-424-L-A-W-S (5297).

www.planobusinesslawyers.com

Richard L. Armstrong, Principal

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2 Comments
  1. Well said! Simple and to-the-point contracts make everyone happier, and inflated language does nothing but frustrate the reader. And personally, it always makes me think the writer has something he or she is hiding behind all those words, which is never a good way to earn the trust of the parties involved. Thanks for your tips on how to make business contracts clear and concise.

  2. Great content, very useful information. Thank you for sharing.

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297