What factors should be considered while framing agreements

Agreements are one of the most important pieces of legal documents which are framed between two or more than two parties. Such documents are meant to bind two parties together in certain terms and conditions which are important to follow to avoid legal actions. But agreements are not too easy to form or draft. There are certain factors which must be considered while framing agreements.

The following are the points to keep in mind before drafting an agreement:

  • The effective date or the date from which the validity of agreement holds must be mentioned in the very beginning of the agreement.
  • The names and addresses of the parties involved in the agreement is the next step to write. Here the titles given to the parties must also be written down for further use in the agreement.
  • There are certain details regarding what the agreement is about for example, whether it is about a business partnership or license granting or lease must be written down in a detailed manner. This section must also consist of the financial details like the cost per month and the total cost considerations.
  • The next section of any agreement must be reserved for writing down the terms and conditions on which the agreement is based. These terms and conditions should be written down point wise and in a detailed manner. This part usually contains points such as termination of agreement, violation of agreement and the recitals of the agreement.
  • At the end, signatures of the parties as well as signature of the witness must be done. In order to deal the agreement and provide an assurance on the part of both involved parties. In any case of violation of terms, none of the parties involved can say that they didn’t agree to the terms because of the signatures.

Category: Sample Agreements

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