Writing

How to Write a Simple Contract

Spencer LanoueSpencer Lanoue
Writing

Writing a simple contract might sound intimidating at first, but it's actually more straightforward than you might think. Contracts are essentially agreements between two or more parties that define the terms of a relationship. In this post, we'll break down the components of a basic contract, offer tips for drafting one, and provide examples to guide you along the way. By the end, you'll have a clear understanding of how to create a simple agreement that works for everyone involved.

🔮
The AI Alternative to Google Docs & Word:
Save time by letting Spell write your docs for you. Turn hours of doc writing work into minutes. Try it free →

Why Write a Contract in the First Place?

We’ve all heard the saying, “Better safe than sorry.” That’s where contracts come in handy. A well-written contract helps define the expectations and responsibilities of all parties involved. It’s like setting ground rules before starting a board game. Everyone knows what’s expected, and there’s less room for misunderstandings.

Contracts can cover anything from freelance work to renting a property, and having one can prevent disputes by providing a written record of the agreement. Plus, if anything does go awry, having a contract can make resolving issues a bit smoother.

Getting Started: Key Elements of a Simple Contract

Let’s break down the basic elements you’ll want to include in a simple contract:

  • Parties Involved: Clearly state who is entering into the contract. Use full names and addresses to avoid any confusion. For example:

    This contract is between John Doe, residing at 123 Main Street, Anytown, USA, and Jane Smith, residing at 456 Elm Street, Othertown, USA.
    
  • Terms and Conditions: This section should outline the specific details of what each party agrees to do. Be as clear and detailed as possible. Here’s a snippet:

    John Doe agrees to provide web development services for Jane Smith, including the creation of a five-page website, by March 1, 2024.
    
  • Payment Details: Specify how much will be paid, when, and how. Here’s an example:

    Jane Smith agrees to pay John Doe $1,000 for the services, with $500 due upfront and the remaining $500 upon project completion.
    
  • Duration: Mention when the contract starts and ends, if applicable.

    The contract will commence on January 1, 2024, and conclude upon completion of the project on or before March 1, 2024.
    
  • Signatures: Have a place for each party to sign and date the contract. This signifies agreement to the terms.

    John Doe: ________________________ Date: __________
    
    Jane Smith: ________________________ Date: __________
    
The AI-First Document Editor
Spell is the AI-powered alternative to Google Docs and Microsoft Word.
Get started for free

Clear Communication: Avoiding Confusion with Precise Language

When writing a contract, clarity is key. You want to avoid any ambiguity that might lead to misunderstandings. Use specific language, and avoid jargon unless it’s common in the field related to your contract.

For instance, if you're drafting a contract for a graphic designer, instead of saying “create some designs,” specify what types of designs, how many, and any particular style or format.

The graphic designer will provide three logo concepts in both vector and raster formats, following the brand guidelines provided by the client.

Besides, try to keep sentences concise and to the point. Long-winded sentences can be confusing and may dilute the clarity of your terms.

Adding Flexibility: The Importance of Including Amendment Clauses

Life happens, and sometimes you need to tweak the terms of a contract. Including a clause for amendments can save a lot of headaches down the line. This clause should state how changes to the contract can be made.

Any amendments to this contract must be made in writing and signed by both parties.

This way, if both parties agree to change a deadline or modify the scope of work, there’s a clear process for doing so, and it’s all documented.

What Happens If Things Go South? Including a Dispute Resolution Clause

Nobody likes to think about things going wrong, but it’s wise to have a plan just in case. A dispute resolution clause outlines how any disputes will be handled. This can save time and money if disagreements arise.

Here’s a simple example:

In the event of a dispute, both parties agree to engage in mediation before pursuing further legal action.

Such clauses encourage parties to resolve issues amicably and keep relationships intact, even when things get a little bumpy.

Go From Idea to Polished Doc 10x Faster With Spell 🪄
Get started for free

Providing Context: The Importance of Background Information

Sometimes, giving a little background can provide context for the contract. This doesn’t need to be lengthy. Just a short preamble explaining why the contract is being entered into can be helpful.

For instance, if the contract is for freelance writing services:

Whereas Jane Smith requires content for her new website, and John Doe is a freelance writer with experience in creating engaging web content, both parties agree to the following terms.

This section helps to set the stage for the agreement and clarifies the intent behind the contract.

Spell Check: The Role of Proofreading

Before finalizing your contract, take the time to proofread it. Typos and grammatical errors can make a contract look unprofessional and could potentially lead to misinterpretations.

If you’re not confident in your editing skills, you might want to use an AI document editor like Spell. It can help you catch errors and make your contract look polished and professional without much hassle.

The AI Alternative to Google Docs
Go from idea to polished doc in seconds with Spell's AI-powered document editor.
Create my first doc

Using Templates: A Helpful Starting Point

If you’re new to contract writing, using a template can be incredibly helpful. Templates provide a basic structure, so you don’t have to start from scratch. There are plenty of free and paid templates available online for various types of contracts.

Just be sure to customize any template you use to fit the specific needs of your agreement. Remove or adjust any sections that don’t apply to your situation, and add any necessary details to ensure the contract is relevant and comprehensive.

Final Thoughts

Writing a simple contract is about clearly outlining the terms of an agreement in a way that’s understandable to everyone involved. With a little practice, you can write contracts that protect both parties and make expectations crystal clear. And if you're looking for a tool to help you draft and refine documents quickly, Spell can be a great ally, helping you create professional contracts in no time.

Spencer Lanoue

Spencer Lanoue

Spencer has been working in product and growth for the last 10 years. He's currently Head of Growth at Sugardoh. Before that he worked at Bump Boxes, Buffer, UserTesting, and a few other early-stage startups.