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How To Draft A Good Business Contract In Los Angeles, California

Business Contract Checklist: What Needs To Be In Your Legal Documents

If you run a business in California, you know how contracts are a great safety net for you, your business, your employees, and your business partners. Business contracts keep everyone in check by making all parties liable for agreements stated and signed on the legal document.

That said, a California business contract needs to meet certain requirements to be a good one. Remember, you'll likely refer to your business contract should problems with your business, partnerships, etc. Hence, you must make sure it's executable in a legal setting and reflects what you want from the agreement.

Let's look at how our experienced prescreened California business law attorneys draft a good business contract:

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What Makes A Good Business Contract In Los Angeles, California?

There are numerous types of business contracts. Some contracts are several pages long, while others are only a single page. A contract often denotes a binding agreement between two or more parties, which may be people or companies. Great contracts outline the obligations, rights, and remedies of each party.

1. Indicate The Relevant Parties

Since contracts are a deal between you and other parties, you'll want to indicate the parties agreeing to something. For example, indicate the full names of the people involved, the complete company name, their addresses, and so on.

Ensure it's as specific as possible. You don't want the judge to think it's been signed by someone else or for other parties to take advantage of the ambiguousness.

2. Be Specific

Whatever you're agreeing to should be laid out and detailed in the business contract. For example, if you're drafting a contract between you and an apartment tenant, it should indicate what they can and can't do, what they need to pay for, and what possible penalties they might face should they not fulfill the contract. It should also indicate details about the apartment relevant to the agreement being signed.

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Another example would be engaging in a business partnership with a supplier. Again, you should indicate the specific responsibilities of you and the other party. You might also include possible alternatives and penalties should the clauses in the contract are not met.

Review essential clauses, including deadlines and intellectual property rights. All completion dates and each party's obligations, including product delivery, should be specified in contracts. Also, go over payment due dates and accepted payment methods, like a check or wire transfer.

3. Double-Check The Dates

Aside from the California business contract's creation and signing date, you should also include expirations, deadlines, and other relevant dates. Again, you want your Los Angeles business contract to be as specific as possible.

This should help you, relevant parties, and the judge to easily tell what's being agreed upon. Then, should there be any breach, you and your Los Angeles Business Attorney should easily be able to point it out.

4. Establish What Constitutes A Breach Of Contract And Possible Repercussions

Describe what constitutes a breach of contract and what the repercussions are. For example, you should indicate what should be done if a supplier can't fulfill orders. Likewise, include possible penalties if a tenant doesn't pay on an agreed date or deadline. Non-breaching parties may be able to enforce a contract or cancel the agreement in the event of serious breaches.

In some cases, contracts will also indicate what should be done should a conflict arise between the parties. Whatever the case, these clauses help you figure out what to do should a breach or problems happen.

5. Notarize Your Business Contract In California

The contract should be signed and dated in front of a notary public. Include any pertinent additional information, such as federal tax identification numbers. A complete copy should be kept by each party.

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Need an experienced and trusted Los Angeles Business Lawyer? 1000Attorneys can refer you to a prescreened lawyer that's fit to handle your current legal concerns. Fill out our inquiry form or contact us through our 24/7 live chat to get started.


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