When you are drafting a contract for your business that brings together two or more different parties, this is certainly something that is worth taking your time over and not rushing in at the deep end. A poorly drafted contract can end up causing you all sorts of problems further down the line. There is plenty that can go wrong when putting together a contract and it is worth knowing more about all of these possible pitfalls as it will put you in the best possible position to be able to avoid them successfully. So, here are just some of the mistakes that are often seen when businesses draft contracts.

Unclear language that is open to interpretation 

First up on the list, the whole reason for having a contract in the first place is so that you can get two or more parties on the same page. If there is a dispute somewhere along the way, you need to have a document that you can refer back to and settle them fully and properly. However, if the language that you use is unclear or open to any sort of interpretation, this can end up having the opposite effect to the one that you were initially intending. Two of the parties could point towards different interpretations, which then means that all sorts of confusion is the only likely result. For this reason, many people bring in professional legal experts when they are drafting contracts. This way, there is some clarity delivered and it is less likely that confusion will occur. 

Not setting it out properly 

Many contracts have a set template of how you should set it out, but a poorly drafted contract can end up leading to additional confusion. For this reason, many people will rely on the support of a contract management system as a way of making sure that all the parties are joined up in their thinking. This also allows for the different sides to make edits as and when they would wish to. Ultimately, having a clear template that you rely upon can be an enormous time saver as well. It means that a big chunk of the difficulty is taken out of your hands and you can simply focus on other matters.

Not recording all of the agreed terms 

If you have a contract that doesn’t have all the key terms listed within it, you could well find that some disputes start to spring up as it is essentially incomplete and doesn’t cover everything that you need it to. Recording everything should be your number one priority. If there is something that you have agreed to verbally, it should also be down there in black and white. This way, you know that if there is a problem somewhere along the way, you can refer back to it. Ultimately, it is better for a contract to cover all the different eventualities rather than putting in too few clauses as it is going to be much harder to get everyone on the same page further down the line. Sometimes, you will find that a contract needs to be redrafted at some point in time, and this should also be a consideration in case there are any major changes that need to be recorded in writing.

Making some proofreading errors 

Again, this is a top reason why people often get their contract looked at by the legal experts, but if there are proofreading errors in the contract such as incorrect dates or terms that aren’t listed quite correctly, this can certainly prove to be a problem. Ultimately, even if you are the one doing the proofreading yourself, it is important that you take enough due care and attention. But the better approach to take on is to have someone who has not seen the contract before to look over it. You will often find that people with a fresh set of eyes are more likely to be able to spot any problems and address them successfully.

Not including a termination clause 

There may be times that everything is going smoothly until eventually it is not. In this case, the contract may well need to be terminated, but if there is no clause that explicitly states that this can be done, it can end up causing you more problems than it is worth. Therefore, it is a good idea to put in a well drafted termination clause. This way, if there is an issue that springs up for any reason, you can simply refer back to the clause. If there is nothing in writing, it is all too easy for the contract to continue indefinitely.

Putting too much in at the last minute 

When you are drafting a contract, you are much better off taking your time rather than simply rushing in at the deep end. If you try to put in too much at the last minute, it is more than likely that errors that could otherwise have been avoided will start to creep in. Of course, there may also be times that it is simply impossible to avoid doing everything late on in the day. In these situations, you will need to take even more due care and attention to proofread the contract fully and iron out any issues. Otherwise, you could easily find yourself in a sticky situation further down the line.

Not getting it legally signed off 

While there may well be some people who are more than happy to draft contracts and they know what they need to include, there are many more who don’t know enough about it to be able to do this accurately. If you are in the second camp of people, it is going to be worth having the contract signed off by a legal pro to ensure that it is watertight.

If you avoid all of these common mistakes when you are drafting a contract, it is much more likely to be the type of document that you need.