How do You Write a Contract Agreement?

Write a Contract Agreement: Dubai is the city known for providing employment opportunities to expatriates from all over the world. To work in UAE legally, all workers must have a labor contract agreement. A labor contract agreement is a type of contract agreement that validates work permit for all employees working for offshore or UAE establishment companies in the country. All businesses running in UAE must provide basic service contract agreement to their employees where the tenure of their employment, identification details of the labor and other basic details of the job must be mentioned to make their work status legit in the country.

What is a Contract Agreement?

No matter how big or small a business is, it always needs contract agreement for certain purposes that help in functioning the business in a risk averse way. A contract agreement form between two parties is where all parties mutually agree to the terms and clauses defined in the document reflecting against mutual expectations. 

What is the difference between Contract and Agreement?

Contract and Agreement are often used interchangeably assuming that both terms have the same meaning. However, in legal context there is a difference between a contract and agreement. An agreement is a document where all parties signing up have mutual agreement for the purpose written in the document. Whereas, a contract is a document of agreement that shall create enforceable obligations for one or more parties who have signed it.

How does a Contract Agreement become enforceable?

An enforceable document can be presented in court to support any kind of decision which arises due to a dispute between the parties. To be legally enforceable, a contract agreement should be clear and specific. In case the contract agreement does not include any of the key components, it would not be valid in court. These essential components needed for a contract agreement to become legally enforceable are:

Offer – A valid contract agreement must have a specified offer by one of the parties.

Acceptance – In response to the offer other party/parties must have the acceptance to make the contract agreement valid.

Mutual Consent – There must be an explanation of mutual consent which will denote that none of the parties were forced or coerced into entering the contract and they did it with their free will.

Legal Purpose – Contract agreement must be legal in eye of court. Any contract that relates with anything illegal or criminal such as prostitution or drug selling will not be considered enforceable in the court.

Competence – Competence shall declare that neither of the parties shall be minor, mentally disable or under any kind of influence of drug or alcohol while signing the contract

Consideration – Contract Agreement must have something that reflects consideration which means something valuable being exchanged between the parties. The things being exchanged may be monetary or services. If there is no giving and receiving, it would not be considered a contract.

How do you write a Contract Agreement?

Contract Agreement form between two parties primarily must include all the essential components listed above to make it legally enforceable. Before getting a contract drafted, you must make sure that the contract should be clear and specific which means there should not be any factor that makes the contract vague and hard to comprehend. A vague and unclear contract may lead the parties towards reluctance before signing it. Especially when it comes to customer contract agreement, a company must make sure to be as vivid and clear as they could be because having an ill drafted contract agreement may tend the company to lose profitability. Some of the tips that can reduce the friction of understanding in a contract agreement are stated below:

Think about your audience – To enhance the comprehension between the parties, it is very useful to draft a contract agreement according to the language understanding of all parties.

Be as precise as possible – Avoid putting too much text in a contract agreement and keep it as summarized and specific as it could be. A lot of unnecessary words and statements may confuse the parties.

Determine the purpose – Determine the entire agenda of the contract with all essential details for parties to process the information. The more specific the contract will be the easier will it be for the reader to process and it will make more sense to the parties.  

Make it understandable – Avoid using too many legal jargons in the contract that may confuse the parties or write the reference of the jargons in an attached annexure. 

Include crucial information straightforwardly – To avoid any kind of dispute of disagreement in future, it is recommended to be honest about all information that may be considered crucial in the contract beforehand.

Looking for a legal consultant to draft a Contract Agreement for you?

At  Notary Public Dubai specialize in drafting all kinds of contract agreements with complete compliance of UAE laws and regulations. Whether you need to draft a labor contract agreement, a basic service contract agreement or customer contract agreement, exceptional team of finest advocates and lawyers in Dubai will guide you to the best of their skills and knowledge.