How to Write a Contract
Seven steps in plain language. Or skip ahead — the free fill-in template already applies all of them.
1. Name the parties precisely
Full legal names and addresses — and for companies, the registered entity name ("Acme Pty Ltd", not "Acme"). Contracts with the wrong entity name are the oldest enforcement headache there is.
2. Describe the exchange in plain words
What one side does, what the other pays or provides. This is 'consideration' — value flowing both directions — and without it there's no contract, just a promise. Plain language beats legalese; courts read contracts the way normal people would.
3. Be specific about scope, dates, and money
Deliverables, deadlines, amounts, payment schedule, what happens to expenses. Nearly every contract dispute is really a specificity dispute: two people who each assumed a different version of the vague sentence.
4. Say how it ends
Termination notice periods, kill fees, what's owed for work done to date. A contract without an exit clause traps both sides in the worst-case scenario — the relationship going sour with no agreed way out.
5. Allocate the risk
Liability caps, indemnities, and warranties decide who pays when something breaks. The market standard for services: neither side liable for indirect damages, provider's total liability capped at fees paid.
6. Pick the governing law
One sentence — 'governed by the laws of [State]' — that saves an entire preliminary court fight if things go wrong across state or national borders.
7. Sign it properly, keep the original
Both parties sign and date; each keeps a copy. Electronic signatures are valid for ordinary contracts almost everywhere. Amendments in writing only — the 'entire agreement' clause makes side promises unenforceable, which is exactly its job.