An individual engages in contract drafting when they write a contract. A contract is a binding agreement between two or more people or entities in which they promise an exchange of things of value, e.g., delivery of a product by one business in exchange for payment of a certain amount of money at a certain time by another business.
Contracts can be written or oral, although some types of contracts must be in writing if the parties want a court to enforce them. For example, in Nevada and in most other states, contracts for the purchase or leasing of real estate must be written. A lawyer consultation with a Nevada lawyer would give a person a more complete understanding of Nevada law regarding contracts.
The fact that a court would enforce a valid contract is generally why people make contracts. They want assurance that their exchange of promised performances is certain to take place.
It would be the rare occasion when an individual or an attorney would write a contract that is completely novel in content. Most contracts that people and businesses need are of a type that they or others have used on prior occasions. A contract lawyer is likely to have access to other contracts that may serve as models for any contract they need to draft for a client.
For example, a manufacturer may routinely order parts and materials they need to produce their product from specific suppliers. They may have a template that they use and adapt depending on the circumstances of a particular transaction. But for significant transactions, the business would carefully review their template and may revise it as needed.
A lawyer also interviews a client who needs a contract in order to learn about their specific situation and whether unique facts would affect the provisions of a contract written for them.
How Are Contracts Drafted in Nevada?
Completely new contracts may be written without reference to existing models on occasion. That is, there may be no existing contract that the individual preparing a contract has at hand, and they start to write the contract without any guidance from an agreement they have already written on a previous occasion.
In fact, on some occasions, a lawyer who engages in preparing a contract for a client may have to engage in legal research to ensure that they are well informed about the law that applies to the client’s situation and that the contract they write reflects the most recent legal developments. This is why a template from a website may fail to address a person’s specific situation.
On the other hand, as noted above, in many business situations, no doubt, the drafter of a contract has a template or an existing contract from a previous transaction that they may adapt, much like a form, simply changing certain limited items of information to reflect the current deal. This might result in a perfectly adequate contract in some situations.
The internet offers thousands of templates for the wide variety of transactions for which people may need contracts. The problem with templates downloaded from the internet is that the individual who uses one does not know their origin and whether a given template results in the best contract from a legal perspective for the job. Hiring a lawyer with contract drafting experience is a better bet.
Among the types of contracts that individuals and businesses need frequently are as follows:
- Sales Contracts: These are contracts for the sale of goods and services.
- Employment Contracts: These are contracts between an employer and employee regarding the terms of the employee’s employment.
- Lease Agreements: Leasing of both residential and commercial property is a common transaction involving real property. Both property owners and lessees need to pay careful attention to the provisions in their lease agreements.
- Partnership Agreements: Many businesses are co-owned by 2 or more people as partnerships. The partnership structure is popular with licensed professionals, e.g., lawyers, doctors and engineers.
- Franchise Agreements: Many businesses today operate as franchises, i.e., businesses that are independently owned and locally operated but that employ the brand and business model of a large national or international company.
- Confidentiality Agreements: Confidentiality agreements are increasingly common in both business and personal contexts.
What Is Contract Review?
Contract review is the process of formally analyzing a contract to determine whether it serves its purpose as well as it can. Among the issues that an attorney would look at in the course of a contract review are the following:
- Clarity: Are the contract terms clear and free of ambiguity?
- Legal Effect: Are the contract provisions certain to have the legal effect that the party to the contract wants in the situation addressed by the contract?
- Risk: Does the contract create any risk of liability or other unfavorable event?
- Negotiation and Modification: Are there terms that clearly require additional negotiation and modification of the contract to ensure that it best serves a party’s interests?
- Completeness: Does the contract still address all aspects of the situation it addresses? Is it complete?
In addition to reviewing a contract itself, an attorney would want to talk to their client and find out if there have been any significant changes in their business or personal situations that would dictate the need to change their existing contract.
If there are any issues with the contract, whether because of contract language or the situation it addresses, an attorney would want to engage in revision of the existing contract.
What Are the Advantages and Disadvantages of Hiring a Lawyer To Draft or Review a Contract in Nevada?
One of the main advantages of hiring a professional lawyer to draft or review a contract in Nevada is the fact that a lawyer is going to have up-to-date knowledge about both the federal and Nevada law that applies to the situation addressed by the contract.
Both federal and state law are in a constant state of flux, and contracts may well need to change in response to changes in the law. If a person uses a template downloaded from the Internet, they do not know if it is up-to-date and reflects the latest developments in the law.
Another reason to have a lawyer draft a contract is to ensure that it holds up in court if one party or the other sues for breach of contract. Having an attorney draft or review a contract can help avoid risks and expensive disputes. Lawyers are educated to write contracts that clearly describe the performance that is expected of each party and to anticipate problems that might arise.
For one thing, a lawyer can add provisions that require the parties to a contract to use mediation or arbitration rather than a lawsuit in a civil court to resolve any disputes. The use of alternative dispute resolution methods can save the parties a lot of money if a conflict arises.
Another issue that a skilled lawyer can address in a contract provision is force majeure. A force majeure is some type of unpredictable but unpreventable circumstance that can arise and defeat contract performance. A force majeure is often a natural disaster or major catastrophe such as a war, earthquake, tornado or flood. Skilled lawyers know that a contract should include a force majeure clause to protect the parties from losses caused by a force majeure.
Of course, the disadvantage that drives so many individuals and businesses to attempt to write their own contracts is the cost of paying an attorney to do the job.
Having a lawyer is advisable when an agreement involves a transaction that has significant value, complexity, or potential long-term consequences. Transactions in which things of substantial value are at issue, such as purchasing commercial real property or selling a business, come with large financial risk. They demand a contract written by a skilled lawyer.
A lawyer can identify possible hidden liabilities, make sure the title is transferred legally, and work through complicated financing terms. A lawyer can protect a person or business from potential losses that could be far greater than an attorney’s fee.
Should I Hire an Attorney in Nevada To Assist With Contract Drafting and Review?
If you need a contract, whether for a business purpose or a personal one, you want to talk to a contract lawyer in Nevada. Your lawyer can explain to you what kind of contract you need and what it should include. They can also provide you with an estimate of what it would cost to have a lawyer draft it for you. You do not need to guess about whether you need a contract, what it should include, or what it may cost. Get the answers you need by talking to a contract lawyer.
