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Watertight contracts. The Do’s and Don’ts.

Posted By admin / June 15, 2016 / Corporate, Employment, General Legal, Legal Drafting, Property, Startups / 0 Comments

Written and contributed by Mr. Kunal Madan

How to draft a watertight contract on your own ?

Drafting a watertight contract can be really simple if you follow these simple Do’s and Don’ts:

 

The Do’s:

Always include the following clauses to avoid future litigation:

A. Consideration – value generated for each party.
B. Deliverables – what goods or services will each party deliver.
C .Responsibility – duties of parties while delivering.
D. Default – what shall  be the damages in case of default.
E. Termination – when can the contract be terminated or deemed to be terminated.
F. Timelines of deliverables – how much time is allowed for each work.
E. Jurisdiction – which court shall be approached in case of a dispute.

 

The Don’ts:

A. Avoid using non-definitive words like ‘would’, ‘should’ etc. Instead, use words like ‘Shall’.
B. If you want to exclude something, avoid vague and generic words. Instead, use words like ‘only’ and ‘exclusive’.

 

Conclusion:

Therefore it is always advised to get your documentation work done from a lawyer considering all above points.

Your contract could be of a single page or 50 pages. But if you follow the above Do’s and Don’ts, you will have a good contract in your hand. In case you need any help, do contact a good lawyer .

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