How to Write a Legal Document for an Agreement
You’ve entered into a contract and now need to know how to write a legal document for an arrangement. This article will cover a few topics that you’ll need to include in your contract, such as representations and warranties, a clause that awards attorneys’ fees, and a termination clause. Here are some helpful tips to help you get started. Hopefully, you’ll find this article helpful in your search for a lawyer.
Including representations and warranties
A contract’s representations and warranties section usually contains a laundry list of items that the parties agree to uphold. The list may also include future promises made by the parties. For example, a seller may agree to refrain from using hazardous materials, but that’s not a warranty, but a covenant. Similarly, if the seller fails to uphold his commitment to avoid the use of hazardous materials, the consequences will differ.
Representations and warranties are two distinct legal forms of statements that may be given in a contract. While they may be similar on the surface, their remedies can be completely different. They are classified as warranties and representations based on the wording and context of the statement. In order to avoid potential conflict, careful drafting is key. Make sure you include exclusion clauses for all statements to avoid ambiguity.
Including a clause that awards attorneys’ fees
Including a clause that awards attorneys’ expenses in a legal document for an agreement is not as hard as it sounds. The clause must explicitly state which party will benefit from the award. The prevailing party is the party that receives more favorable relief. The clause may be a separate provision or a sub-provision in the fees clause. Attorneys’ fees may be included in the definition of costs or expenses, but in some states, they cannot.
Including a clause that awards attorneys’ fee in a legal document for an agreement can have several unintended consequences. A clause that only awards attorneys’ fees to one party can escalate an otherwise straightforward dispute into a multimillion-dollar one. Moreover, a prevailing party clause may make it impossible for either party to settle, forcing both parties to take on all the costs.
Including a termination clause
Including a termination clause in a contract or legal document for an agreement is vital to protect both parties. The clause should be well-drafted to ensure that the other party cannot easily and quickly terminate the agreement. However, it should also be included in the terms and conditions of the agreement as a safety net in case of any misbehaviour by the users. Termly’s Terms and Conditions Generator can help you draft the right termination clause for your contract or legal document.
Depending on the contract, a termination clause can have various forms. It can be an automatic or conditional termination clause. Often, parties will include a clause that allows them to terminate the agreement at any time, either without giving a reason. Such a clause generally states that a defaulting party may terminate the contract on 30 days’ notice, but can also require a notice that is properly delivered.