Clear written contracts reduce disputes and make it easier to enforce agreements. A contract usually requires an offer, acceptance, consideration and legal purpose.
Key terms
- Parties and their legal names.
- Scope of work or products.
- Price, payment terms and late fees.
- Timelines and deliverables.
- Warranties and limits on liability.
- Termination and cancellation.
- Dispute resolution, such as mediation or arbitration.
- Governing law and venue.
Good practices
- Put agreements in writing and sign them.
- Keep terms clear and specific.
- Use plain language.
- Keep signed copies.
- Update when terms change, in writing.
Common mistakes
- Vague scope that leads to scope creep.
- No payment schedule.
- Using someone else's template without checking it fits.
- Not defining who owns work product.
- Ignoring termination and dispute provisions.
When to get a lawyer
For high-value contracts, long-term relationships, intellectual property or unusual risks, have a lawyer review. Templates can help for simple jobs. See our guides to contractor agreements, NDAs and demand letters.
Frequently asked questions
Are verbal contracts valid?
Often yes, but hard to prove, and some must be in writing.
Can I use an email as a contract?
Sometimes, if it shows agreement.