Need to Create a Contract? Here's What You Need To Know

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

Creating a contract is an absolute necessity when doing business, no matter the size. A contract safeguards both parties engaged in a deal and outlines their duties. Not only is it obligatory to have one, but also a wise business decision; without it, it may be difficult to enforce the agreement or assign blame if something goes wrong.

Drafting up a contract isn’t overly complicated but does require a grasp of legalities and knowledge of how to word it in a way that both sides comprehend. Ensuring that all terms and conditions are clearly stated is imperative; this includes obligations for each party, time-frame of the agreement, payment details and any other relevant clauses. It’s also crucial that the contract is legally binding and cannot be altered without permission from all involved parties.

When setting up a contract, all potential disputes should be taken into account so suitable measures can be put in place to resolve them if need be – this means including clauses that offer resolutions or remedies. It’s also vital to consider applicable laws as well as make certain the document can actually be enforced in its jurisdiction.

In summary: creating a contract not only awards security for everyone involved but presents professionalism too - meaning both sides trust they will abide by the rules set out by said document. Here at Genie AI we provide free create-a-contract templates without requiring an account, plus step-by-step guidance on how exactly to access our template library today! Read on below for more information!

Definitions (feel free to skip)

Research relevant state and federal laws- Investigating state and federal rules and regulations that are applicable to the contract.
Seek out legal advice- Consulting a lawyer or other legal expert for assistance in understanding the legal requirements of the contract.
Identify and clearly define- To determine and explain in detail what the rights and responsibilities of each party are in relation to the contract.
Obtained and reviewed- Collected and examined documents needed for the contract.
Establish- To decide and make clear who is responsible for what within the contract.
Written in a clear and concise manner- Crafted in a way that is easy to understand and not overly complicated.
List out- To include all relevant terms and conditions of the contract.
Carefully review- Thoroughly examining each term and condition to make sure they are fair and balanced.
Amend and adjust- Make changes or modifications to the terms and conditions as needed.
Create a draft- Write up an outline that includes all relevant terms and conditions.
Make and store copies- Duplicate and save the contract and any related documents.
Ensure- Making sure that all parties are adhering to the terms and conditions of the contract.
Monitor- Observing the contract for any changes or amendments that need to be made.

Contents

• Understanding the fundamentals of contract law and the legal requirements of creating a contract
• Research relevant state and federal laws
• Seek out legal advice if needed
• Developing and defining the scope of the contract
• Identify and clearly define the rights and responsibilities of each party
• Gathering all relevant information and documents that are necessary for the contract
• Ensure that all necessary documents are obtained and reviewed
• Determining the roles and responsibilities of the parties involved
• Establish who is responsible for what within the contract
• Writing the terms and conditions of the contract
• Ensure the contract is written in a clear and concise manner
• List out all relevant terms and conditions of the contract
• Negotiating the terms and conditions of the contract
• Carefully review each term and condition to ensure they are fair and balanced
• Amend and adjust terms and conditions as needed
• Drafting the contract
• Create a draft document that includes all relevant terms and conditions
• Ensure the contract is reviewed by a third party
• Signing and finalizing the contract
• Ensure that all parties involved have reviewed the contract and agree to the terms
• Sign the contract to make it legally binding
• Keeping copies of the contract and any related documents
• Make and store copies of the contract and related documents
• Monitoring and auditing the contract
• Ensure that all parties are adhering to the terms and conditions of the contract
• Monitor the contract for any changes or amendments that need to be made

Get started

Understanding the fundamentals of contract law and the legal requirements of creating a contract

• Understand the elements of a contract and the legal requirements for creating a contract such as mutual consent, consideration, and capacity
• Become familiar with contract law, including common law and statutory law, and how they may apply to your contract
• Identify any potential contractual issues that may arise and how to avoid them
• Know the different types of contracts and how they can be used
• Research relevant state and federal laws that may apply to your contract

Once you understand the fundamentals of contract law and the legal requirements of creating a contract, you can check this off your list and move on to the next step.

Research relevant state and federal laws

• Look up the relevant laws in your state and the federal government
• Identify the legal requirements and regulations that apply to the contract you are creating
• Research any special requirements or exemptions that may be relevant to your situation
• Use the information you have gathered to create the contract

Once you have completed your research and have identified the relevant laws and regulations, you can check this step off your list and move on to the next step.

Seek out legal advice if needed

• Contact a lawyer who specializes in contract law to get advice on the contract
• Have them review the contract before you sign it to ensure that all the terms stated in the contract are valid
• Ask the lawyer questions about how to interpret any complicated clauses or terminology
• Make sure to get the lawyer’s opinion on what clauses and language should be added or removed
• When you’ve gotten the advice you need, you can be confident that you have a legally binding contract that you can sign and move forward with.

Developing and defining the scope of the contract

• Brainstorm specific details of the contract that should be addressed
• Write down key points of the proposed agreement
• Cover the who, what, why, when and how of the contract
• Consider any special circumstances related to the agreement
• Outline the termination and renewal of the contract
• Set a timeline for completion and review
• Check for any legal requirements or restrictions
• Draft the contract using the outlined terms
• Have both parties review the contract and sign off
• You can check this off your list and move on to the next step once both parties have agreed to the terms and signed the contract.

Identify and clearly define the rights and responsibilities of each party

• List out the rights and responsibilities of each party in the contract
• Use language that is clear and unambiguous
• Allocate any liabilities between the parties
• Ensure that any obligations imposed on the parties are achievable
• Make sure that the terms are in accordance with any applicable laws or regulations
• When the parties have agreed on the rights and responsibilities and they have been clearly defined, you can move on to the next step.

Gathering all relevant information and documents that are necessary for the contract

• Collect all documents relevant to the contract, including any quotes, estimates, bills, invoices, and contracts related to the agreement
• Identify all parties involved and the details of their agreement
• List out all of the goods, services, and rights the contract is for
• Gather any additional information that may be needed for the contract, such as legal requirements, regulations, or other pertinent details
• Obtain any necessary signatures from parties involved
• Once all necessary documents, information, and signatures have been obtained, the step is complete and you can move on to the next step.

Ensure that all necessary documents are obtained and reviewed

• Review applicable contracts that are already in place
• Ensure that all governing documents, including any local, state, and federal regulations, are on hand
• Meet with all parties involved to discuss the contract, and review any documents they may have to provide
• Once all documents have been obtained and reviewed, you can move on to the next step of determining the roles and responsibilities of the parties involved.

Determining the roles and responsibilities of the parties involved

• Outline exactly who is responsible for what within the contract, such as who is responsible for performance, payment, arbitration, etc.
• Clearly define any obligations and responsibilities of each of the parties involved.
• Consider whether there are any contingent obligations based on any future events or scenarios that could affect the agreement.
• Make sure that each party is aware of any restrictions or limitations on their role or what they can do.
• Ensure that the responsibilities of each party are outlined in detail and that both parties agree to them.

You can check this step off your list and move on to the next step when you have outlined the roles and responsibilities of both parties, and have ensured that both parties agree to the responsibilities.

Establish who is responsible for what within the contract

• Outline the duties and responsibilities of each party involved in the contract
• Set out the obligations and expectations of each party
• Specify who will be responsible for the performance of each task and what they are expected to do
• Make sure that both parties agree to the terms and responsibilities outlined in the contract
• When both parties are satisfied with the roles and responsibilities, you can move on to writing the terms and conditions of the contract.

Writing the terms and conditions of the contract

• Brainstorm the important elements of the contract, such as who is responsible for what, payment terms, timeline, and any other details that may be necessary
• Prepare a draft of the contract and review it carefully to ensure that all of the necessary elements have been included
• Carefully read through the contract to ensure that all of the language used is clear and concise, and that all of the terms are as comprehensive and unambiguous as possible
• Have an attorney review the contract to make sure that it is legally binding and compliant with all applicable laws and regulations
• Once the contract has been finalized, all parties should sign and date the document to make it legally binding.

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

• Once all of the parties have signed the contract and the document is legally binding, you can move on to the next step in the guide.

Ensure the contract is written in a clear and concise manner

• Use plain language, avoid legalese and jargon, and break up long sentences
• Ensure the contract is easy to read, with no ambiguity or confusion
• Make sure that the contract is written in a way that is understandable for all parties
• Double-check for typos and other errors
• When you are confident the contract is written in a clear and concise manner, you can check this off your list and move on to the next step.

List out all relevant terms and conditions of the contract

• Brainstorm all the terms and conditions that you would like to include in the contract
• Draft an outline of the contract with the desired terms and conditions
• Research applicable laws and regulations to ensure that the contract is legally compliant
• Review and revise the terms and conditions of the contract to make sure they are clearly defined and unambiguous
• Once you are satisfied with the terms and conditions of the contract, you can move on to negotiating the terms and conditions of the contract.

Negotiating the terms and conditions of the contract

• Discuss the terms and conditions of the contract with the other party to ensure that both parties are in agreement
• Negotiate any areas of disagreement and find a compromise that is mutually beneficial
• Ensure that both parties understand the language used in the contract and the implications of each term and condition
• Sign the contract once both parties have agreed upon all terms and conditions
• How you’ll know when you can check this off your list and move on to the next step: Once both parties have agreed upon the terms and conditions, and the contract has been signed by both parties, you can move on to the next step.

Carefully review each term and condition to ensure they are fair and balanced

• Read through the terms and conditions of the contract carefully
• Make sure that each party is treated fairly and that all terms are balanced
• Ensure that all terms are enforceable and legally binding
• Seek legal advice if there are any areas of confusion
• Review any clauses that you are unfamiliar with
• Make sure that all risks, responsibilities, and liabilities are addressed
• You will know you have completed this step when you are confident that the terms and conditions of the contract are fair and balanced across both parties.

Amend and adjust terms and conditions as needed

• Identify any language or terms that may be open to interpretation and make sure they are defined
• Seek legal advice if needed to make sure terms are legally enforceable
• Make sure all parties are in agreement with the final version of the contract
• Re-read the contract to make sure all parties have the same understanding of the terms and conditions
• When all parties have agreed to the terms and conditions, you can move on to the next step.

Drafting the contract

• Research the relevant legal requirements for the contract to ensure it is applicable
• Determine who will be signing the contract and what type of document is needed
• Identify the key information that should be included in the contract
• Draft the language of the contract to ensure it is legally binding and covers all necessary terms and conditions
• When the draft is complete, review it to ensure it is accurate and legally sufficient

When you have completed this step, you can move on to the next step of amending and adjusting the terms and conditions as needed.

Create a draft document that includes all relevant terms and conditions

• Outline the contract’s purpose
• Identify the parties involved
• Include all necessary clauses, such as payment terms, dispute resolution, warranties, and termination provisions
• Make sure each clause is specific to the contract
• Have all parties involved review the document and make any necessary changes
• Once all parties have approved the document and made any necessary changes, the draft is complete and ready to be signed.

Ensure the contract is reviewed by a third party

• Have a third party that is familiar with contract law review the contract
• Ask the third party to provide feedback, and make any necessary changes
• Review the contract again to ensure all changes have been made
• When you are satisfied with the contract, you can check this step off your list!

Signing and finalizing the contract

• Have all parties involved sign the contract and ensure that all signatures are witnessed and notarized (if required)
• Check that all relevant dates are accurate
• Make sure each party involved has a copy of the signed contract
• Have the contract reviewed by a lawyer to ensure that it is legally binding
• When all of these tasks have been completed, you can move on to the next step.

Ensure that all parties involved have reviewed the contract and agree to the terms

• Ensure that all parties involved are aware of the contract’s contents and have agreed to the terms
• Ask each party to review the contract thoroughly and provide any feedback or desired changes
• Discuss any feedback or changes to ensure that all parties are in agreement
• Once all parties agree on the terms, you can check this step off your list and move on to signing the contract to make it legally binding.

Sign the contract to make it legally binding

• Have each party involved sign the contract using a pen or electronic signature
• Make sure all signatures are provided on the same copy of the contract
• Ensure that each party has their own copy of the signed contract
• Once all signatures are obtained, the contract is considered legally binding and you can move on to the next step.

Keeping copies of the contract and any related documents

• Make at least two copies of the contract, one for yourself, and one for the other party.
• Gather and make copies of any related documents such as receipts, invoices, or agreements.
• Store all copies of the contract and related documents in a safe place.
• Keep any documents related to the contract for at least three years.

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

• Once you have made copies of the contract and related documents, and stored them in a safe place, you can move on to the next step.

Make and store copies of the contract and related documents

• Create digital and physical copies of the contract and any related documents
• Make sure each party has a copy of the contract and related documents
• Store copies in a secure location
• Use cloud-based storage or an encrypted hard drive
• When finished, you’ll have copies of the contract and related documents stored securely.

Monitoring and auditing the contract

• Monitor the contract regularly to ensure that all parties are adhering to the terms and conditions
• Make sure all parties are aware of the terms and conditions and are following them
• Conduct periodic audits of the contract to verify compliance
• Establish a timeline for audits and review the contract regularly
• Maintain records of all contract-related activities
• When all parties have fulfilled their obligations, you can declare the contract complete and check it off your list.

Ensure that all parties are adhering to the terms and conditions of the contract

• Make sure the contract is written in accordance with relevant laws and regulations
• Ensure that all parties involved have read, understood, and agreed to the terms and conditions
• Ensure that all parties have signed the contract
• Check that all parties have access to a copy of the contract
• Check that all parties have the means to meet the conditions of the contract
• When you’ve checked each of these points, you know that all parties are adhering to the terms and conditions of the contract.

Monitor the contract for any changes or amendments that need to be made

• Establish an agreement with all parties involved to monitor the contract for any changes or amendments that may occur.
• Have each party review the document periodically to check for any discrepancies.
• Meet with all parties to discuss the changes and amendments needed.
• Negotiate any changes and amendments needed.
• Have all parties sign the amended document.
• Ensure that all parties understand their obligations under the amended contract.
• Keep a copy of the amended document for your records.

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

• When all parties have agreed to the changes and amendments and signed the amended document, you can check this off your list and move on to the next step.

FAQ:

Q: Do I need to create a contract if I’m offering services on a freelance basis?

Asked by Emma on August 10th 2022.
A: If you are offering services on a freelance basis, it is advisable to create a contract to officially document the agreement between yourself and your client. This will help to protect both parties and avoid any potential disputes. In the contract, you should include the details of the services offered, the terms and conditions of the agreement, and any payment terms. It is important to be aware that different jurisdictions have different laws and regulations, so it is important to consult a lawyer in your specific region to understand what is required in your contract.

Q: What clauses should I include in my contract?

Asked by Jack on April 24th 2022.
A: The clauses included in your contract will depend on your specific situation and the details of the agreement between you and your client. Generally, there should be clauses detailing the parties involved in the agreement, a description of the services offered and their scope, payment terms, confidentiality obligations, intellectual property rights, termination and dispute resolution clauses. Your contract should also include any applicable warranties or disclaimers. It is important to ensure that the terms of your contract are clear, unambiguous and enforceable so that all parties involved are protected in the event of a dispute.

Q: Are there any legal requirements which must be included in my contracts?

Asked by Abigail on December 31st 2022.
A: Depending on the jurisdiction in which you are operating, there may be certain legal requirements which must be included in your contract. These may include minimum wage requirements, working hours limits and other employment obligations. Additionally, there may be specific industry regulations or laws which must be adhered to when creating contracts for certain types of services or products. It is important to consult a lawyer in your local jurisdiction to ensure that all legal requirements are met when creating your contract.

Q: What considerations should I make when writing my contract for international customers?

Asked by Noah on March 17th 2022.
A: When writing a contract for international customers, it is important to consider the various legal systems which may be applicable to the agreement such as differences in language or currency. Additionally, it may be necessary to include additional clauses such as choice of law clauses or clauses specifying which court has jurisdiction over any dispute arising out of the agreement. Furthermore, it is important to ensure that all parties understand the terms of the agreement and agree on them before signing the contract. It is advisable to seek legal advice when drafting contracts for international customers as different countries have different laws and regulations which must be taken into account when creating an enforceable agreement.

Q: How do I ensure my contract is enforceable?

Asked by Emma on July 5th 2022.
A: To ensure that your contract is enforceable it is important that all parties involved understand and agree to its terms before signing it. Additionally, all parties should sign it freely without any duress or coercion from another party. Furthermore, it is important that all parties sign with their own full names and not aliases or initials as this can make enforcement difficult in some cases. Finally, it is advisable to keep records of who signed when and where as this can help with enforcement if necessary in future.

Example dispute

Suing for Breach of Contract

• A plaintiff may sue for breach of contract if the defendant has failed to uphold the terms of a contract.
• The plaintiff must prove that a valid contract existed between the two parties and that the defendant failed to perform as outlined in the contract.
• Evidence that a contract was breached may include emails, texts, or other written documents that outline the agreement between the parties.
• The plaintiff may be entitled to compensation in the form of financial damages or equitable relief.
• Damages might include out of pocket expenses, lost profits, or attorney’s fees.
• Equitable relief might include specific performance or an injunction.
• Settlement or court may be used to resolve the dispute.

Templates available (free to use)

Boilerplate Contract
Boilerplate Contract Simple
Boilerplate Contractual Notices Clause

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