Texas Business Attorney

Writing an Effective Contract

In the course of running your business, you will inevitably find yourself needing to draw up and negotiate business contracts with other companies, individuals, or organizations. These agreements can be very simple or very complex, and deal with just about any aspect of cooperative business operations. The ability to effectively write a contract is a skill that is vital to your business.

Before You Begin

Before you put pen to paper or sit down to negotiate a business agreement, you should have a clear idea why you want to enter into a contract. Define your goals very clearly beforehand. This will help ensure that you do not lose track of your own objectives in the process of writing or negotiating. It is up to you to uphold the best interests of your business.

Once you have compiled a list of goals or demands, look over it once more and begin to separate them into two groups: the goals or demands you absolutely must achieve, and the ones which you are willing – at least in part – to compromise on. Although deciding between “needs” and “wants” may be difficult, doing so will give you a base from which to negotiate with the other party. It will also help keep negotiations focused, efficient, and productive.

From First Draft to Final Draft

The most important thing to preserve when writing a contract is accuracy. Remember, once the contract is signed, the agreement has been made. Failing to discover a mistake until afterwards can cost you and your business dearly, so be sure to proofread each draft of your contract carefully. All names and titles must be absolutely correct. Check to make sure that what the contract says is in line with what you mean. Remember – people who read the contract later on will not know what was going through your head while you wrote it; they will only be able to interpret the words on the page. To this end, keep your language clear and concise, to avoid confusing yourself and the other party. Define important or ambiguous terms. Number each page. This ensures that no one can add or remove pages from the agreement without the consent of both parties.

Don’t avoid the topic of litigation. Breaches of contract and contract disputes can always happen, so plan ahead for them. Outline all aspects of possible litigation. This will save you time and money in the future.

Finally, once your drafting is complete, re-read the document once more. This time, compare the contract with the list of goals you compiled at the beginning of the process. Did you achieve the goals you wanted? Does the contract help you reach your objectives? On the other hand, have you left room for compromise? Will the contract be attractive and/or acceptable to the other party? Keep in mind that a one-sided contract will not survive negotiations. It is important to strike a balance between preserving your interests and leaving room for the interests of the other person. Otherwise, negotiations will break down before they even begin.

Seek Expert Advice

Because entering into a contract is a binding agreement, you cannot afford to make mistakes. Getting the advice and aid of an experienced Austin contract lawyer can help you avoid costly errors. Call 512-472-2431 to speak with an Austin business lawyer from the Slater & Kennon law firm today.




Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.