Do I Need a Lawyer to Draft Contracts for My Business?
Attorney expertise can prevent common and costly mistakes of poorly drafted contracts
By Nancy Henderson | Reviewed by Canaan Suitt, J.D. | Last updated on November 29, 2023 Featuring practical insights from contributing attorneys Kenneth F. Neuman and Melissa Demorest LeDucUse these links to jump to different sections:
- Why You Need a Strong Written Contract
- How Attorneys Draft Strong Legal Contracts
- Get Legal Services from an Experienced Attorney
By the time a Detroit custom-home builder hired attorney Kenneth Neuman to sort out his troublesome contracts, “he was knee-deep in litigation, with one of his clients suing him left and right and for everything under the sun,” Neuman says. “There was no provision in this contract dealing with limitations on damages. Nothing provided for the waiver of a jury trial, let alone sending the parties to arbitration. And he didn’t have clear language in terms of when installments were due under his construction agreement for the management fee.”
Neuman, who often handles construction contracts, employment contracts, and other agreements as a managing partner at Altior Law in Birmingham, Michigan, resolved his new client’s lawsuit and rewrote the contract with specific protections that made the company less vulnerable to future litigation.
Hurried or incomplete business contracts may seem harmless on paper, but they can make or break a business.
Why You Need a Strong Written Contract
“When everybody’s getting along, the contract sits in a drawer, and nobody ever talks about it,” Neuman says. “But when problems arise—and conflicts invariably do—the written word is critical because courts will enforce the agreements as written. And the courts will impose a higher standard on business owners since sophisticated parties are expected to have understood the terms of their deal.”
“A lot of times when people end up in a problem situation, it’s because they tried to draft the contract themselves,” says Melissa Demorest LeDuc, a business attorney with Demorest Law Firm in Royal Oak, Michigan. “It’s very important to spend a few hundred bucks upfront to avoid paying thousands in litigation later on.”
Before you meet with an attorney for the first time, determine pertinent details such as deadlines and performance dates. Is this a template you’ll likely use over and over or a one-of-a-kind agreement with a particular party?
How Attorneys Draft Strong Legal Contracts
Here are a few general tips for savvy contract drafting:
1. Avoid Legalese and Use Clear, Simple Language
The mark of a solid contract is clear, simple language, says Neuman. “You don’t need that 40-page contract in every scenario,” he says.
“If you can lay out the important terms and conditions in five to 10 pages, then do it in five to 10 pages.”
2. Pay Attention to the Termination Provisions
Pay attention to the termination wording and make sure you’re able to get out of the contract if you need to, attorneys say. Likewise, include protective provisions about the process by which you’ll get paid and automatic renewals. You want to avoid loopholes in your legally binding agreement.
3. Consider Alternative Dispute Resolution (ADR) Mechanisms
Strongly consider an arbitration clause that requires any disputes to be resolved outside of court.
“If you’re doing business-to-business especially, do you want to be facing a judge or a jury who’s accusing you of taking advantage of the little guy?” says Neuman. “Good lawyers know to put into the contract provisions about what happens if there is an issue between the owners and they’re at loggerheads.”
4. Give Yourself Flexibility for Unforeseen Events
The contracting process should be overseen by a reputable legal team that can assess the functionality of the terms of the contract.
“You want to be as specific as possible, but give yourself some flexibility in case unexpected things happen,” says Demorest LeDuc. “We need to make sure that, if something [unexpected] happens, you have a way out of the contract or a way to modify it. Things we may not have concerned ourselves with so much before suddenly are big concerns.”
Get Legal Services from an Experienced Attorney
If you need help drafting a business contract or other legal document or need to take legal action for a breach of contract or other legal issue, visit the Super Lawyers directory to find an experienced contract attorney in your area for legal advice. When choosing a contract lawyer, interview several to ensure you click, and seek someone who understands your industry, says Demorest LeDuc.
For additional information, see our overview of contract law.
What do I do next?
Enter your location below to get connected with a qualified attorney today.Additional Contracts articles
State Contracts articles
Related topics
At Super Lawyers, we know legal issues can be stressful and confusing. We are committed to providing you with reliable legal information in a way that is easy to understand. Our legal resources pages are created by experienced attorney writers and writers that specialize in legal content in consultation with the top attorneys that make our Super Lawyers lists. We strive to present information in a neutral and unbiased way, so that you can make informed decisions based on your legal circumstances.
Attorney directory searches
Helpful links
Find top lawyers with confidence
The Super Lawyers patented selection process is peer influenced and research driven, selecting the top 5% of attorneys to the Super Lawyers lists each year. We know lawyers and make it easy to connect with them.
Find a lawyer near you