TMCnet Feature
December 03, 2021

Tips for Creating the First Draft of a Business Contract

As a business owner, a business contract is vital to the success of a business. It determines the business risks and also protects the employer should something go wrong. However, it should also not leave an employee feeling like they have no leg to stand on. 

The key to an effective business contract is balance. All the stakeholders should take responsibility and stand accountable for their deeds. Writing an airtight business contract starts with the first draft, though. 

Keep the lingo simple

A proper business contract does not need to use superficial and high-minded language to be worth anything. Many lawyers believe that if the language is complicated to follow, then it is good. A proper contract is written so that the layman and the professional can understand every word in the contract and know what it says. 

Contract negotiation automation software is ideal for company owners who are new to the game. SirionLabs offers services that make it easy to accelerate authoring and minimize risk. If the world of employment contracts is still new to you, you can always use one of the many templates and adjust it according to your needs. 

Speak to the right people

When you write the first draft of a business contract, several people need to give the go-ahead when decisions need to be made. If you catch yourself having to speak to the CEO the whole time, then you are wasting your time. The management team who is in charge of hiring new staff will be able to inform decisions better. They are also the ones who have to sign off the final product, so to give them the power to input and change the draft as is necessary. 

Leave no detail unwritten

A good business contract does not need to consist of high-sounding language. It is supposed to allow an employee to work in peace and to do their job effectively. To get to the point where everyone is satisfied, every single detail of the contract needs to be included. There should be no grey areas where employees can pull a fast one and exploit a weakness in the contract. 

Everything from termination to sick leave and remuneration should be covered in the contract and when there are really important points, it should be written in as much detail as possible. 

Agree on contract termination terms

Accidents happen, but because some employers do not see damaged goods as a waste of money, they end up losing their jobs. Instead of writing the damaged product off as collateral, they terminate the contract of the employee. 

When the rules of termination are set, there cannot be any thought that they might lose their jobs when they break something. If the rules are well written, the employee will know when he or she is being screwed over. The same goes for the employer who will be able to draw a line in the sand. If the conditions of employment are not met, they can legally get fire the employee if need be. 

Make room for dispute

Although a contract is there to protect both employee and employer, under the right circumstances, things can happen that would call for termination. However, when the employee feels that the termination was unjust due to circumstance, then there needs to be room for dispute. 

This does not mean that the rules in the contract should be watered down. Instead, it means that we are all human and make mistakes and those mistakes could be revered.  

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