09 Nov 2018

4 MISTAKES IN THE CONTRACT DRAFTING THAT MAKE DISPUTE

A contract is a binding legal document that sets out parties agreed upon and functions as a guideline in carrying out each other’s responsibilities. Contracts that contain errors can cause disputes in the future. There are four mistakes in drafting a contract:

1. The Use of Standard Format

It is not suggested to use standard formats in making important contracts. Blangket, a “one-size-fits-all” text (standard format) can cause problems when unexpected situations arise, or when you don’t understand the legal consequences of the language and definitions used.

2. Superfluous Language Can Backfire

The use of ineffective and long-winded language is a common characteristic of a contract with a standard format. This is probably because the legal document maker has the intention to impress lay people, who have never had legal training, by using many words.

This can be a backfire, especially when language that is not needed is contradictory or makes other clauses in the same legal document ambiguous. The use of words that are not needed can cause misunderstandings regarding the provisions agreed to by the parties, which will then lead to disputes.

3. Add the Last Minute Inclusion.

Adding the last minute inclusion can be a dangerous game, especially when you are working under a tight deadline, as mistakes are more likely to occur when we work under pressure. If you have to make modifications at the last minute, try carefully to analyze exactly what you are adding and try to imagine the possibility of a misunderstanding.

taking notes in simple language, regarding the provisions to be included in the contract, with the parties to the contract can also be very helpful, with the aim of obtaining their consent or confirmation of your interpretation. Holding discussions and taking notes as references to refer to can be very valuable if a dispute arises

4. Don’t Proofread the Contract Draft

Proofreading is very important, and not doing it can cause problems. After you draft the contract, read the entire draft again to check clarity and accuracy. Make sure the terms and conditions are clearly stated and there are no inconsistencies and grammatical errors. If possible, have it reviewed by experienced contract attorneys, so that they can provide recommendations and alert you of all potential weaknesses and holes in the contract.

By avoiding these common mistakes, the language in the contract becomes clear and unambiguous which in turn details of the intentions of the parties can be conveyed clearly. A review of the contract draft can reduce the likelihood of future disputes, which is one of the main objectives when drafting a contract. Learning and practicing to draft both specific and general agreements are very crucial in order that the document drafter has what it takes to make perfect contracts. We provide learning and practicing through training with the best knowledge and experience from the high calibre trainer. (CLICK HERE)  (SIF)

Leave a Reply

Your email address will not be published. Required fields are marked *