Drafting of Contracts

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A contract is a mutual agreement between two or more parties who agree to perform or abstain from performing something. It is a document that establishes a binding legal relationship between such parties. Once the contract is drafted, signed, and executed, each party has a legal obligation to perform as per the terms and conditions mentioned therein. However, if a party fails to adhere to the provisions of the contract or they act in contravention and fail to perform their obligation, they may attract judicial penalties.

A contract, as mentioned above is the foundation for a legal and commercial relationship between two parties. Hence, it is essential that the clauses mentioned are in compliance with law. If otherwise, it could cause the entire document to be declared void. This means that all obligations and claims against breach (if any) would have no effect and no penalties or other enforcements could be made against the defaulting party.


The process of drafting a contract entails the following:

  1. identifying the parties: a contract or agreement begins by identifying the parties who will be subject to the terms and conditions of the contact. It is essential that all the parties are identified and their consent to undertake the obligations mentioned in the agreement is taken.Such consent should be free and not forced or coerced. Furthermore, it also mandatory that the parties to the contract are competent. This means that they should have attained the age of majority, they should be free from mental illness, and shouldn’t be barred by law to contact.
  2. Object of the contract and obligations: the contract should include the purpose for which it is drawn. it should clearly identify the obligations of all the parties and should be as nuanced as possible.
  3. Payment and Consideration: as a contract is a reciprocal arrangement, the consideration that will be paid against the performance has to be clearly mentioned. Ideally. The contract should also define the instalment period, the mode of payment, and other such details regarding consideration.
  4. Indemnity and other clauses: The parties may also include clauses of indemnity, which is undertaking the loss of another party, which arises while performing the subject matter of the contract. They may also include other clauses like confidentiality, force majeure etc.
  5. Commencement and termination: The contract must specify the tenure for which such contract will be enforceable.
Drafting of contracts

Process of Drafting of contracts


  1. A written contract imposes binding obligations
  2. Written contracts are of substantial evidence in courts
  3. They help remove ambiguity as to the rights and duties of parties and the tasks they have to perform
There are three advantages of drafting of contracts

Advantages and Features of Contracts


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