Drafting Contract

Contract drafting is a precise legal process involving the creation of a formal written agreement between parties. This agreement clearly defines the rights and obligations that will be implemented in a binding manner for all involved. A primary goal of effective contract drafting is to prevent future disputes and provide a legal reference should disagreements arise.

In this article, we will outline the key steps in drafting contracts and the essential elements that must be included, along with the necessary conditions to follow. Continue reading to gain expertise in contract drafting.

Please note that at Al-Hokuk Law Firm for Legal Consultations, our website offers contract drafting services for all types of legal agreements pertaining to Iraq, the Kurdistan Region, and the Gulf Arab countries. This is due to our large and experienced legal team with over 36 years of expertise in this field. Contact us now and let us draft your contract professionally.

What is the Method of Contract Drafting?

When drafting a contract, several fundamental steps are necessary to ensure its professionalism and legal clarity. These include:

1. Contract Structure: Every contract follows a specific structure. It must begin with a clear title that reflects its content, such as “Apartment Lease Agreement.” Following this, the date and city of execution should be specified. Crucially, the details of the contracting parties must be clearly stated, including their full names, identification numbers, addresses, and their legal capacity (e.g., buyer, seller).
2. Contract Clauses (Terms and Conditions): This step involves defining the essential clauses that the contract must contain, such as:
   • Purpose of the Contract: Clearly state the reason for entering into the agreement and the mutual intent of the parties.
   • Duration: Specify the commencement and termination dates of the contract.
   • Financial Value and Payment: Clearly state the agreed-upon monetary value and the payment method (e.g., cash, bank transfer).
   • Guarantees and Remedies for Breach: Define what legally binds the parties to the agreement and the consequences of a breach of contract, including any penalty clauses.
   • Dispute Resolution: Specify the court or competent authority that will handle any disputes that may arise.
3. Legal Formulation of the Contract: When preparing the contract, it must be written in clear and straightforward language, avoiding complexities, convoluted phrasing, spelling errors, or legal inaccuracies. It should rely on precise legal terminology.

 

Conditions for Drafting a Contract

For a contract to be legally sound, professional, and effective, the following conditions must be met:

1. Consent of the Parties: The contract must be based on the full and free consent of all parties involved. There should be no fraud or misrepresentation that could invalidate the agreement.
2. Legal Capacity: Each party entering into the contract must possess the legal capacity to do so. This means they must be of legal age, of sound mind, and not legally incapacitated. In the case of companies, the individual signing the contract must have the legal authority to represent the company.
3. Clear Subject Matter of the Contract: The subject matter of the contract must be clearly defined, existing, and possible to fulfill (e.g., the sale of a property), and must not violate the prevailing laws of the state or public order and morality.
4. Clarity of Contract Terms: The contract must be clear, detailed, and accurate in all its provisions. It should include all essential information such as the date of the agreement, the subject matter, the purpose and type of contract, the duration of commitment, the agreed-upon consideration or price, and clear terms for payment and delivery.
5. Compliance with Applicable Law: The contract must be drafted in accordance with the applicable laws of the relevant jurisdiction, such as the laws of Iraq, the Kurdistan Region, or the Gulf Arab states.

 

 

What is the method of drafting the contract?

1. Precise Identification of Parties: Accurately identify each party involved in the contract by providing their full personal details and clearly stating each party’s objective in entering the agreement. Define each party’s obligations simply and directly to ensure clarity and legal compliance.
2. Use Clear and Precise Legal Language: Avoid ambiguous or incomprehensible complexities and terminology. Be direct and use clear verb tenses.
3. Clarify Financial Details: To prevent future disputes, clearly specify payment terms, fees, the payment mechanism, and any penalty clauses for late payments or failure to fulfill contractual obligations.
4. Establish a Dispute Resolution Mechanism: It is crucial to include a dispute resolution clause to avoid future issues between the parties. Define the method of resolution, such as referring to a competent court or a designated arbitrator.
5. Legal Review: Upon completing the drafting process, it is highly recommended to have the contract reviewed by a specialized lawyer before signing to ensure it is free from legal loopholes.
6. Contract Documentation and Signatures: After legal review, the contract must be signed by all parties to ensure the rights and obligations are legally binding. It is advisable to have witnesses present and to retain a copy of the signed contract with a relevant authority if necessary.

 

In conclusion, the most crucial aspects of contract drafting are clarity and conciseness. It’s important to avoid unnecessary detail while strictly adhering to the law and including all essential information regarding the contract’s purpose, the involved parties, payment and settlement methods, and clearly defined dispute resolution mechanisms to prevent future issues. Remember that at Al-Hukok Law Firm for Legal Consultations, we are here to draft your contracts professionally and are readily available for any legal advice you may require. Contact us now.