Some people want to save money so they attempt to draft a contract on their own. They assume they know enough about the situation at hand (for instance, an agreement between two businesses to provide goods and services to one another) that they can just draft the contract themselves. Or they turn the internet to find a form contract where they just fill in the details of the two parties and assume this will be enough. In general, this is a bad idea. Since any agreement will be governed by the “four corners of the contract,” it is vital that a contract be specific to this individual arrangement and accurately reflects the agreement between the two parties.

For instance, there might be a simple contract made between two businesspeople, with a handshake agreement on what happens if one party fails to perform. Suddenly, one party isn’t performing so the other person sues to enforce their handshake agreement. Unfortunately, because such language isn’t outlined in the contract, it may be completely unenforceable. Any agreements must be in that contract in order to protect your interests.

A well-written, unambiguous contract is extremely valuable because it lays out the expectations for both parties. By clearly outlining what is expected of both parties, disputes can be prevented, saving time and money. If a dispute does arise, a well-written contract can provide penalties should parties fail to perform.

Contracts might seem straightforward, but they can cause major problems if they aren’t drafted properly. By working with an experienced business law attorney, you can be sure that any contingencies are planned for in a contract. Before drafting your own contract or using boilerplate language, speak to a lawyer who can discuss your options.

At Doumar Martin PLLC, we have helped clients throughout the Washington, D.C., area draft contracts. For a consultation to discuss your situation, contact Doumar Martin PLLC today.