Creating Legal Agreements That Work

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

When two parties enter into an agreement, they are entering into a legal commitment to adhere to the terms of that contract. Agreements provide clarity on the expected rights and obligations of each party involved. It is vital that agreements be written clearly, without ambiguity, and with provisions in place for remedies should one of the parties breach the agreement. Additionally, it is important to include a clause which outlines the governing law of the agreement - this will help ensure that all interpretations are done in line with these laws and render any disputes enforceable.

The Genie AI team want to emphasise how important it is to have a legally sound and effective agreement when doing business with others. In order for everyone involved in an agreement to remain protected, agreements must contain all necessary information and be written with both parties’ interests taken into consideration. For those looking for guidance on creating their own legal documents, or who need access to quality template library without paying for a lawyer’s services, Genie AI can provide a step-by-step guide as well as access to our open source legal templates today.
Consensus on what constitutes an effective agreement may differ depending on its purpose or context; however all agreements should be correctly structured and contain adequate protection for both parties from potential breaches or misunderstandings down the line. With Genie AI’s extensive dataset, community template library and expert advice you can rest assured your legal documentation work is in safe hands – read on below for our step-by-step guidance as well as information on how to access our free template library right away!

Definitions (feel free to skip)

Contract: A legally-binding agreement between two or more parties.
Party: An individual or organization involved in a legal contract.
Roles: The responsibilities of each party in a contract.
Entity: A business, government organization, or individual.
Deliverables: Items or services provided by one party to another in a contract.
Timelines: The amount of time allowed for a specific task or milestone to be completed.
Milestones: Important points in the progress of a contract.
Rights: Legal entitlements of the parties involved in a contract.
Responsibilities: The duties and obligations of the parties involved in a contract.
Representations and Warranties: Statements made by a party to a contract.
Confidentiality: Keeping information shared during a contract confidential.
Non-Disclosure: A clause in a contract requiring parties to keep shared information secret.
Arbitration: A process of resolving disputes outside of court through a third party.
Mediation: A process of resolving disputes outside of court through negotiation.

Contents

• Establishing the Parties Involved
• Identifying who is entering into the contract
• Identifying the roles of each party
• Determining the type of entity each party is (individual, company, etc.)
• Stating the Agreement’s Purpose
• Clearly defining the purpose of the agreement
• Outlining all expected outcomes
• Establishing the Terms and Conditions of the Agreement
• Defining the rights of all parties involved
• Defining the responsibilities of all parties involved
• Including Any Necessary Representations and Warranties
• Making sure all parties involved are aware of their respective obligations
• Making sure the agreement is legally binding
• Addressing Confidentiality and Non-Disclosure
• Establishing a confidentiality agreement to protect the interests of all parties involved
• Setting Forth the Agreement’s Duration
• Defining when the agreement begins
• Defining when the agreement ends
• Addressing Dispute Resolution
• Establishing a mechanism for resolving any potential disputes that may arise
• Drafting and Negotiating the Agreement
• Drafting the agreement to include all necessary components
• Negotiating any necessary changes to the agreement
• Signing and Executing the Agreement
• Having all parties involved sign the agreement
• Putting the agreement into effect
• Finalizing and Filing the Agreement
• Finalizing the agreement with any necessary changes
• Filing the agreement with the appropriate authorities

Get started

Establishing the Parties Involved

• Gather the full names of all parties involved
• Verify that all parties are legally capable of entering into a contract
• List the full names of all parties involved in the agreement
• Make sure each party has a valid address
• Verify the legal names of any businesses involved in the agreement
• When all the necessary information has been gathered, you can move on to the next step.

Identifying who is entering into the contract

• Determine the names of the individuals or entities who are entering into the agreement
• Ensure that each party has the legal capacity to enter into the agreement
• Determine whether any of the parties need to obtain authorization to enter into the agreement (e.g. partners, board of directors, etc.)
• Have each party sign the agreement, if applicable
• When all parties have been identified and each has the necessary legal capacity and authorization to enter the agreement, you can check this step off your list and move on to the next step.

Identifying the roles of each party

• Consider the purpose of the agreement and the roles each party will play in carrying out the agreement
• Brainstorm and list out the responsibilities of each party involved in the agreement
• Ensure the roles of each party are clearly outlined in the agreement
• Make sure that each party has an understanding of what their duties and obligations are
• When you have identified the roles and responsibilities of each party in the agreement, you can move on to the next step.

Determining the type of entity each party is (individual, company, etc.)

• Research the legal status of each party to determine whether they are an individual, company, trust, LLC, partnership, etc.
• Talk to the parties involved to get more information about their legal status.
• Ask each party for their legal name and business address.
• Gather any documents that may help confirm the legal status of each party.
• Verify the legal status of each party with a lawyer or legal expert if needed.

Once you have completed this step, you will have determined the legal status of each party and can move on to the next step of stating the agreement’s purpose.

Stating the Agreement’s Purpose

• Describe the purpose of the agreement in a few sentences
• Include what each party is expected to do or provide
• Explain the expected outcome
• Outline the timeframe for the agreement
• Make sure to include any specific laws or regulations that apply to the agreement
• Once it’s clear what the purpose of the agreement is, you can move on to the next step.

Clearly defining the purpose of the agreement

• Identify what the agreement is meant to accomplish
• Research relevant laws and regulations associated with the agreement and adjust the language accordingly
• Ensure the language of the agreement is clear, concise and specific
• Outline the consequences for any breach of the agreement
• Define any terms that are necessary for the agreement
• When finished, review the agreement and make sure it is consistent and matches the original intention of the agreement
• Once the agreement is finalized, have the parties involved sign and date the document
• You know you can check this step off your list when the agreement is finalized and all parties involved have signed it.

Outlining all expected outcomes

• Clarify the output that all parties involved are expecting from the agreement
• Make sure that all parties are aware of the outcomes that are expected from the agreement
• Ensure that all parties are in agreement that these outcomes are achievable
• Document the expected outcomes in a clear and concise manner
• When all parties agree to the expected outcomes, you can check this step off your list and move on to the next step.

Establishing the Terms and Conditions of the Agreement

• Research and familiarize yourself with the laws, regulations, and legal standards applicable to the agreement
• Identify and list all of the terms and conditions that should be included in the agreement
• Clarify the roles and responsibilities of all parties involved in the agreement
• Determine the scope of services, the length of the agreement, and the payment terms and conditions
• Outline any dispute resolution procedures that should be included
• Draft a preliminary version of the agreement and review it with all parties involved
• Make revisions and edits to the agreement based on feedback
• Finalize the agreement and have all parties sign it

Once all the terms and conditions have been established and agreed upon, you’ll be able to move on to the next step.

Defining the rights of all parties involved

• Clearly state the rights of each party, such as the right to terminate the agreement and the right to receive payment
• Provide details on how and when the rights can be exercised, such as payment terms, termination policies, and the rights of each party to make changes to the agreement
• Make sure that each party is aware of their rights and responsibilities under the agreement, and that these are clearly defined in the contract
• Have each party sign the agreement to indicate their understanding of the rights and responsibilities

You’ll know you’ve completed this step when you have a signed agreement that clearly outlines the rights of all parties involved.

Defining the responsibilities of all parties involved

• Make sure to include the responsibilities of each party in a clear and concise manner
• Ensure that the responsibilities are specific and measurable
• Include deadlines and other timelines of expected performance
• Make sure that the agreement include any additional provisions that may be needed to address any particular situation
• Ensure that all parties understand their obligations and agree to them
• Once all responsibilities of the parties have been defined, reviewed, and agreed upon, move on to the next step in the process.

Including Any Necessary Representations and Warranties

• Identify any representations and warranties that need to be included in the agreement
• List out the specific representations and warranties, including any relevant details
• Check that the representations and warranties are legally sound and that they accurately reflect the intent of the agreement
• Ensure that all parties involved are aware of the representations and warranties
• Revise the agreement to include the necessary representations and warranties
• Make sure that any changes to the agreement are properly documented
• Review the agreement and confirm that all changes have been properly applied

You’ll know you can check this step off your list once you have identified and included any necessary representations and warranties in the agreement, and the agreement has been reviewed and confirmed to accurately reflect the intent of all parties involved.

Making sure all parties involved are aware of their respective obligations

• Review the agreement to ensure that all parties have a clear understanding of their obligations and duties under the agreement.
• Ensure that any terms or conditions are clearly stated and easily understood.
• Ask for clarification on any terms or conditions that are not clear.
• Make sure that any relevant deadlines or other time-based requirements are clearly stated.
• Confirm that all parties are in agreement on the obligations and duties outlined in the agreement.

How you’ll know when you can check this off your list and move on to the next step:

• When all parties involved have a clear understanding of their obligations and duties under the agreement.
• When all terms or conditions are clearly stated and easily understood.
• When all relevant deadlines or other time-based requirements are clearly stated.
• When all parties are in agreement on the obligations and duties outlined in the agreement.

Making sure the agreement is legally binding

• Make sure that all parties sign the agreement, and that it is dated.
• Have a witness present if possible to sign the agreement as well.
• Check that all parties have sufficient legal capacity to enter into the agreement.
• Check that all parties have given their free and informed consent to the agreement.
• Check that the agreement does not contain any clauses that are illegal or contrary to public policy.
• When the agreement is signed and dated, and all parties have given their free and informed consent, you can be certain that the agreement is legally binding.

Addressing Confidentiality and Non-Disclosure

• Determine what information should be kept confidential and consider any legal implications
• Establish a clear legal agreement that outlines the responsibilities of both parties when it comes to confidentiality and non-disclosure
• Include language that defines what is considered confidential information, and the circumstances under which it can be shared
• Make sure to cover any liabilities or legal ramifications associated with the confidentiality agreement
• Discuss and agree on a reasonable timeframe for the agreement
• Finalize the agreement and have both parties sign off on it

You will know you can check this step off your list when you have determined what information should be kept confidential and established a clear legal agreement outlining the responsibilities of both parties when it comes to confidentiality and non-disclosure, agreed on a reasonable timeframe for the agreement, and finalized and signed off on the agreement.

Establishing a confidentiality agreement to protect the interests of all parties involved

• Determine the scope of the agreement, including what information or materials will be considered confidential
• Decide who will have access to the confidential information
• Identify the remedy for a breach of the agreement
• Specify what type of protection the disclosing party will receive
• Include a clause to protect the disclosing party from any unintentional breach
• Note any restrictions on the use of the confidential information
• Set out any obligations for the receiving party to return or destroy the confidential information
• Make sure the language is clear and understandable to all parties involved
• When all parties have agreed, sign and date the agreement

Once all of the above steps have been completed, you can move on to the next step of setting forth the agreement’s duration.

Setting Forth the Agreement’s Duration

• Determine the terms for the agreement’s duration: is the agreement for a particular event, or for a fixed period of time?
• Specify the start date of the agreement.
• Include a clause that outlines what happens if the agreement is terminated early.
• If applicable, include a clause that outlines what happens if the agreement is extended.
• Have all parties involved sign the agreement before it goes into effect.

Once all of the above steps have been completed, you can move on to the next step of defining when the agreement begins.

Defining when the agreement begins

• Determine the start date of the agreement and clearly state this in the document.
• Make sure to include the time zone and date in which the agreement will start.
• Check to make sure that the start date is after the signature date of the agreement and that the parties have enough time to review the document and make any necessary changes.
• Once you have determined the start date and included it in the agreement, you can move on to the next step: Defining when the agreement ends.

Defining when the agreement ends

• Decide how long the agreement will last, whether it will end on a certain date, after a certain event has occurred, or when either party gives notice
• Confirm the termination date in the agreement and make sure that both parties agree to it
• Consider whether the agreement should include provisions for early termination and how it should be handled
• Outline what the obligations of the parties are after the agreement ends, such as any confidentiality or non-compete obligations
• Include a clause that requires the parties to return any confidential information or other items that were provided to each other during the term of the agreement
• Once these points have been addressed, you can check this step off your list and move on to the next step in creating a legal agreement that works.

Addressing Dispute Resolution

• Create a dispute resolution provision in the agreement which will outline the steps taken to resolve any disputes that arise between the parties
• Include any details such as who will be responsible for making decisions, how long any decisions can take, and any other factors that could affect the process
• Make sure to include a clause that all disputes must be resolved through arbitration or mediation, rather than through court proceedings
• Determine whether any information discussed in the dispute resolution process should remain confidential
• When the dispute resolution provision is complete, check it off your list and move on to the next step in creating your legal agreements.

Establishing a mechanism for resolving any potential disputes that may arise

• Determine the best form of dispute resolution for the agreement, such as arbitration, mediation, or court.
• Include language that will allow either party to choose the dispute resolution mechanism and any other options available.
• Determine which state or country’s laws will govern the agreement.
• Outline the procedures for resolving disputes, including timelines and communication requirements.
• Include language that allows the parties to agree to waive their right to dispute resolution.
• Determine which party will be responsible for covering any costs associated with dispute resolution.

You will know you can move on to the next step when you have created a mechanism for resolving potential disputes that is agreeable to both parties and is included in the agreement.

Drafting and Negotiating the Agreement

• Research and review applicable laws and regulations related to the agreement.
• Discuss and negotiate the terms of the agreement between both parties.
• Make sure the agreement is tailored to the needs of both parties.
• Create a written record of the agreement, noting any changes and the date they were made.
• Have the agreement reviewed and approved by both parties.
• Obtain signatures from both parties.

When you can check this off your list and move on to the next step:

• When both parties have approved and signed the agreement.

Drafting the agreement to include all necessary components

• Outline the agreement in detail, keeping in mind the purpose and intent of the agreement
• Include specific language on the parties involved, the subject matter, and the obligations of each party
• Detail all of the terms and conditions of the agreement, including any necessary provisions for dispute resolution
• Ensure all necessary legal clauses, such as confidentiality and non-disclosure, are included
• Read and review the agreement to ensure all necessary components are included and that the language is clear and concise
• Have each party sign and date the agreement to indicate their consent and acceptance

When you can check this off your list and move on to the next step:

• Once all necessary components have been included in the agreement and it has been reviewed and signed by both parties, you can move on to the next step of negotiating any necessary changes to the agreement.

Negotiating any necessary changes to the agreement

• Outline the changes needed to the agreement and explain the reasoning behind the changes
• Send the revised draft to the other party for review and discussion
• Come to agreement on the changes needed and negotiate any further revisions
• Finalize the changes to the agreement and review the document in its entirety
• When both parties agree to the document, you can check this off your list and move on to the next step.

Signing and Executing the Agreement

• Ensure that all parties involved in the agreement are present and that their identities have been verified.
• Have each party involved sign the agreement.
• Have the signed agreement notarized, if necessary.
• Make copies of the agreement for all parties involved.
• Store the original agreement in a safe space.

Once all of these steps have been completed, you can move on to the next step of having the agreement notarized.

Having all parties involved sign the agreement

• Get a witness to sign the agreement in addition to all parties involved
• Have all parties sign the agreement in the presence of the witness
• Ensure all parties have signed the agreement in the correct place
• Check the date on the agreement is correct
• Once all the above steps are complete, you can confirm that this step is complete and move on to the next step.

Putting the agreement into effect

• Ensure that all parties involved have signed the agreement.
• Make sure all signatures are notarized, if necessary.
• Make multiple copies of the agreement for each party.
• File the original agreement in a safe place.
• You will know you can check this step off your list when all parties have signed and the agreement is filed safely.

Finalizing and Filing the Agreement

• Have all parties involved in the agreement sign the document
• Ensure that the agreement is properly notarized if required by law
• File the agreement in the relevant court or register, if applicable
• Make copies of the agreement for all parties involved
• Check that all steps have been completed and the agreement is finalized
• Store the signed, dated and filed agreement in a safe place
• Move on to the next step, if applicable

Finalizing the agreement with any necessary changes

• Review the agreement to ensure that all changes have been made
• Ask a legal advisor to review the agreement to ensure that it meets all legal requirements
• Make any necessary changes to the agreement as recommended by the legal advisor
• Have all parties sign the agreement
• Make copies of the agreement for each party
• You can check this off your list when the agreement has been signed and all necessary changes have been made.

Filing the agreement with the appropriate authorities

• Determine which authorities the agreement must be filed with - this will depend on the type of agreement and the jurisdiction.
• Prepare the correct paperwork for filing the agreement.
• Gather any fees or other documents required for filing.
• File the agreement with the appropriate authorities and retain a copy for your records.
• Check with the authorities to make sure the agreement was received and accepted.
• Once the agreement is filed, you’ll know it’s been accepted and can move on to the next step.

Example disputes

Possible Lawsuits Referencing Agreements

• Breach of contract: A plaintiff can raise a lawsuit for breach of contract if the defendant failed to fulfill their obligations under an agreement or contract. The plaintiff must prove that there was an agreement, that the defendant breached the agreement, and that the plaintiff suffered damages as a result.
• Unfair and deceptive practices: A plaintiff may raise a lawsuit if the defendant engaged in unfair or deceptive business practices. The plaintiff must prove that the defendant’s practices were deceptive or unfair, and that the plaintiff suffered damages as a result.
• Misrepresentation: A plaintiff may raise a lawsuit for misrepresentation if the defendant made false or misleading statements about a product or service. The plaintiff must prove that the defendant made a false statement, that the plaintiff relied on the statement, and that the plaintiff suffered damages as a result.
• Breach of warranty: A plaintiff may raise a lawsuit for breach of warranty if the defendant failed to fulfill its obligations under a warranty agreement. The plaintiff must prove that there was a warranty, that the defendant breached the warranty, and that the plaintiff suffered damages as a result.
• Unconscionability: A plaintiff may raise a lawsuit for unconscionability if the agreement is so one-sided that it is unenforceable. The plaintiff must prove that the agreement was unconscionable, and that the plaintiff was harmed as a result.
• Negligence: A plaintiff may raise a lawsuit for negligence if the defendant failed to exercise reasonable care in fulfilling its obligations under an agreement. The plaintiff must prove that the defendant had a duty of care, that the defendant breached that duty of care, and that the plaintiff suffered damages as a result.
• Fraud: A plaintiff may raise a lawsuit for fraud if the defendant made false representations with the intention to deceive the plaintiff. The plaintiff must prove that the defendant made a false statement, that the defendant intended to deceive the plaintiff, and that the plaintiff suffered damages as a result.

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Templates

All our legal agreement templates can be found at https://app.genieai.co/community

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