In business, you are going to have contracts that you need to sign. The problem is that many contracts are hard to understand.
When you set up a contract, you want it to be as easy to understand as possible. Using legalese may be necessary in some cases, but in most, using plain language is better for everyone involved.
What should you include in your contract to avoid disputes?
Some of the things you’ll want to include in your contract in plain language include:
- Terms of termination, if you need to end the contract
- Time limits to complete projects, deliveries or other events
- Terms of payment
- How to handle delays
- What you’ll do if there are damages
- How to handle claims against the other party
- What to do if there is a dispute
Some people prefer to add an arbitration clause, too, which will minimize the risk of litigation due to a misunderstanding or conflict.
Why not use legalese in your contract?
Some contracts will have at least some legalese, or legal language, but for most, using plain, common language is better. Why? You can set your terms and agreements in clear, concise language, so that there is a lower chance of misunderstandings. Legalese tends to use terms that are Latin or French, which can make it hard for a layman to understand. Instead, opt for clear language and be sure that you and the other party understand and agree to the contract and its intentions. This will help prevent arguments or disputes down the line due to miscommunication.