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Contract making is of great significance in the company business operation. It requires professional knowledge in the consultation, drafting, signing and execution of contracts. Many companies choose to outsource their contract related issues to professional agencies. This is a wise decision to defense against potential risks and to pave the way for the future cooperation and their development.
Brief introduction of Contract
A contract is a legally binding agreement which recognizes and governs the rights and duties of the parties to the agreement. An agreement typically involves the exchange of goods, services, money, or promises of any of those. In the event of breach of contract, the law awards the injured party access to legal remedies such as damages and cancellation.
Guidelines for Contract Making
1.Identify each party correctly
When stipulating the rules of the contract. You need to include the correct legal names of the parties to the contract so it's clear who is responsible for performing the obligations under the agreement (and who you have legal rights against if things go wrong). This is of great importance!
2.Spell out all of the details
The body of the Contract should spell out the rights and obligations of each party in detail. If you forget to include something, you can always create a short written amendment. Or, if you haven't signed the agreement, you can hand-write the change into the contract. If parties initial the change, it becomes part of the contract. In this regard, try keep every details into consideration and keep them all in the contract, which is helpful for avoiding the dispute.
3.Specify payment obligations
Payment is of great significance in the business operation since the ultimate aim of the business operation is to make profit. The dispute arising in payment might disturbing. In this regard, Specify who pays whom, when the payments must be made, and the conditions for making payments is essential in contract making. As you might guess, money is often a contentious issue, so this part should be very detailed. If you're going to pay in installments or only when work is completed to your satisfaction, say so and list dates, times, and requirements. The method of payment should be take into consideration as well.
4.Agree on a way to resolve disputes
Write into your agreement what you and the other party will do if something goes wrong. You can decide that you will handle your dispute through arbitration or mediation instead of going to court, which takes up a lot of time and money.
5.Pick a state law to govern the contract
If you and the other party are located in different states, you should choose only one of your state's laws to apply to the contract to avoid sticky legal wrangling later. In addition, you may want to specify where you will mediate, arbitrate, or bring legal actions under the contract. This will simplify your life if a dispute does crop up.
Please feel free to contact us for contract making and other services, Tannet are glad to offer our professional services.
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