Legal documents are signed contracts between you and another person, business, or entity. They safeguard both parties’ rights and obligations while offering some form of recourse if things don’t go as expected. Preparing legal documents can take time, research, and insight, but when done right, it can protect you and your business at the right time.
The article below outlines the most direct method for preparing legal documents and other lawful considerations:
Have you ever heard the saying that a legal document is only worth the paper it’s written on? This statement still holds true to this day! Even your preparation methods will affect the overall result and should follow a tried-and-true approach.
Here is how to prepare a legal document using a simple, four-step process:
Every transaction is unique, which means that your contracts will follow this principle as well. Take a few moments to think about the transaction type. For example, if you’re selling a home, use a sales contract , or if you’re a service provider, offer customers a service contract .
Contracts that don’t conform to federal, state, and local rules can render the agreement unenforceable, which leaves you legally and financially exposed. Instead of grabbing the first boilerplate template available online, consider the industry, geographic region, and contract laws that apply.
It’s always a good idea to confirm the terms and conditions with the other party before drafting the agreement. You can also use this conversation to initiate negotiations if appropriate. Ensure that you take detailed notes and reserve them in case questions about your contracts arise.
Once you have all the information you need about the transaction, it’s time to put the terms in writing. Get into as much detail as necessary to support the intended outcome of your legal documents.
While you can amend your documents in the future, it is much more efficient to draft the first document from the beginning. It will make you seem very capable and prepared in the process. Capability builds trust and a more secure relationship with your customers.
Legal documents include the relevant details, terms, and conditions associated with a transaction. However, specific provisions will vary widely across contract types, even basic ones. Ultimately, a contract must contain the provisions that demonstrate an offer, acceptance, and an exchange of consideration.
The general terms and conditions of legal documents typically include:
More complicated transactions will use additional provisions. For example, derivatives are financial contracts for underlying assets and require other terms, such as asset class and expiration.
Meet some lawyers on our platformThere is virtually an unlimited number of legal documents that one person or business can prepare. However, some basic types are more commonly used than others and address a broader range of transactions.
The basic types of legal documents include the following:
Nondisclosure agreements , also called NDAs, are legal documents that employees agree to keep company trade secrets confidential. Employers use NDAs to give them recourse against acts of unlawful disclosure.
Consulting agreements , also called consulting contracts, establish the terms and conditions of a company’s service relationship with an individual or another company. It will detail the services provided and the nature of the consultant’s relationship with the company.
Employment contracts are legal documents between an employer and an employee that specify their employment terms and conditions. A well-written employment contract can benefit both the employer and the employee by clarifying job responsibilities, stipulating each party’s rights, and ensuring job security.
Service contracts are legal documents between a client and a service provider. It specifies the roles and responsibilities of both parties in completing and paying for work. They can also include time frames for starting and finishing the job, additional due dates if necessary, and other procedural details.
Sales contracts are legal documents between a buyer and a seller of an asset, usually real estate, that specify the terms of the sale and the parties’ rights and responsibilities in the transaction. It will be signed by the buyer and seller, as well as their witnesses.
Asset purchase agreements , also known as APAs, are contracts between a buyer and a seller that spells out the terms and conditions of a company’s asset purchase and sale. These legal documents generally include provisions, such as purchase price, credit terms, liens , asset encumbrances, and closing terms.
Terms of service, often referred to as ToS, refer to rules and regulations that a provider attaches to a software service or website. These types of legal documents are so common in the digital space that users now expect them as a condition of using the software.
Privacy policies are legal documents that explain how a company or website collects, handles, and processes personally identifiable information (PII). It specifies whether the information is private or sold and what they can do to opt-out.
Understanding the meaning of legal documents is the easy part. The trick is knowing that their power lies within situations involving conflict, questions, and relationships. Some clauses and provisions will protect you just in the knick-of-time or in uncommon situations.
Here is a hypothetical example of a business scenario involving legal documents and the power of provisions:
This particular example highlights how legal documents protect companies and people alike. While verbal agreements are enforceable in most states, you should always put them in writing!
Anyone may need to prepare legal documents for a personal or business transaction, and document drafting measures will depend upon the transaction type. For example, end-of-life planning requires estate planning documents, or selling a house requires real estate documents.
If you want to draft legally sound contracts, always seek legal advice from contract lawyers . They will understand your situation, apply the law to it, and craft the perfect document that meets your needs.
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I am a California-barred attorney specializing in business contracting needs. My areas of expertise include contract law, corporate formation, employment law, including independent contractor compliance, regulatory compliance and licensing, and general corporate law. I truly enjoy getting to know my clients, whether they are big businesses, small start-ups looking to launch, or individuals needing legal guidance. Some of my recent projects include: -drafting business purchase and sale agreements -drafting independent contractor agreements -creating influencer agreements -creating compliance policies and procedures for businesses in highly regulated industries -drafting service contracts -advising on CA legality of hiring gig workers including effects of Prop 22 and AB5 -forming LLCs -drafting terms of service and privacy policies -reviewing employment contracts I received my JD from UCLA School of Law and have been practicing for over five years in this area. I’m an avid reader and writer and believe those skills have served me well in my practice. I also complete continuing education courses regularly to ensure I am up-to-date on best practices for my clients. I pride myself on providing useful and accurate legal advice without complex and confusing jargon. I look forward to learning about your specific needs and helping you to accomplish your goals. Please reach out to learn more about my process and see if we are a good fit!
A twenty-five year attorney and certified mediator native to the Birmingham, Alabama area.
I absolutely love helping my clients buy their first home, sell their starters, upgrade to their next big adventure, or transition to their next phase of life. The confidence my clients have going into a transaction and through the whole process is one of the most rewarding aspects of practicing this type of law. My very first class in law school was property law, and let me tell you, this was like nothing I’d ever experienced. I remember vividly cracking open that big red book and staring at the pages not having the faintest idea what I was actually reading. Despite those initial scary moments, I grew to love property law. My obsession with real estate law was solidified when I was working in Virginia at a law firm outside DC. I ran the settlement (escrow) department and learned the ins and outs of transactions and the unique needs of the parties. My husband and I bought our first home in Virginia in 2012 and despite being an attorney, there was so much we didn’t know, especially when it came to our HOA and our mortgage. Our real estate agent was a wonderful resource for finding our home and negotiating some of the key terms, but there was something missing in the process. I’ve spent the last 10 years helping those who were in the same situation we were in better understand the process.
Benjamin is an attorney specializing in Business, Intellectual Property, Employment and Real Estate.
Attorney Gaudet has worked in the healthcare and property management business sectors for many years. As an attorney, contract drafting, review, and negotiation has always been an area of great focus and interest. Attorney Gaudet currently works in Massachusetts business, employment, corporate and bankruptcy law.
With over 25 years of experience in the technology sector, I am a strategic business counsel, outsourced general counsel, and a leader of high-performing legal teams aimed to help maximize the efficiency of all stakeholders. I recently joined the renewable energy space with the addition of a new client on its way to becoming the first Chinese battery company to build a battery manufacturing presence in the US beginning with a 1+ GWh cell and pack plant, and a domestic anode and cathode plant. In my most recent full-time role, I served as the Sr. Director and Assistant General Counsel at SMART Global Holdings, where I served as the general counsel for the HPC and AI division of this publicly traded holding company, comprised of four companies, before becoming the global head of the commercial legal function across all portfolio companies, including two multinational industry leaders. During much of my career, I provided outside legal services on a recurring basis for several years advising several high growth start-ups and venture firms as well as house hold names, and also led one of the country's fastest growing infrastructure resellers and managed services providers. My core competencies include contract review, commercial negotiation, legal operations, information security, privacy, supply chain and procurement, alliances and channel sales, HR, and general corporate. I am passionate about leveraging my legal skills to achieve business solutions, supporting innovation and growth in the technology sector, and helping maximize the commercial flow and efficiency at growing companies. I hold an undergraduate business degree, a JD, a MSBA Taxation, and certifications from the California Bar Association, Six Sigma, and ISM.