How to write a contract
Start with the deal, not the legal words. A contract is a written record of what two people agreed: who they are, what one will do or deliver, what the other will pay, by when, and what happens if plans change or something goes wrong. Answer those questions in plain sentences, in the order below, and have both sides sign. A lawyer is worth it for big or unusual deals, but most everyday contracts can be drafted yourself and checked against a list.
Updated November 9, 2026 · 5 min read
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What makes it a contract
Courts in every state look for the same few ingredients. A well-written contract makes each one easy to see:
- An offer and an acceptance. One side proposes terms and the other agrees to them. Both signatures are the clearest proof that happened.
- Something of value on each side. Work for money, goods for money, a promise for a promise. Lawyers call it consideration.
- Parties able to agree. Adults of sound mind, or people with authority to sign for a business. A minor can usually undo a contract; see can a minor sign a contract.
- A lawful purpose and definite terms, clear enough that a stranger could tell whether each side did its part.
Most contracts don't legally have to be written down, though some do, such as land sales and deals that can't be finished within a year. Are verbal contracts binding covers that list. For everything else, writing it down is about proof: what you can show a customer, or a judge, two years from now.
The sections, in order
| Section | What to write | Common mistake |
|---|---|---|
| Title and date | What the document is, the date it's signed, and an effective date if that differs | No date, so nobody can tell which version came last |
| Parties | Full legal names, the type of business, addresses, and who signs for each business | A brand name instead of the legal entity that owes the money |
| Scope | Exactly what will be done or delivered: quantities, materials, models, locations | "Install new roof" with no product, color or area |
| Price | The total, or the rates and how they're measured, plus taxes and fees | A price with no word on what it includes or leaves out |
| Payment | Deposit, a schedule tied to milestones, due dates, method, late charges | "Due on completion" with no definition of complete |
| Timeline | Start date, milestones, finish date, and what pauses the clock | A promised date with no allowance for weather or the other side's delays |
| Changes | How changes are requested, priced and approved in writing | Extras agreed out loud and argued over at the end |
| Responsibilities | Permits, site access, materials, insurance, cleanup | Assuming the customer knows the trade's customs |
| Warranty | What you guarantee, for how long, and what voids it | Promises from the sales pitch that never made it into the document |
| Ending early | How either side can terminate, the notice required and what's owed | No way out except a breach |
| Disputes | Which state's law applies, where disputes are heard, mediation or arbitration | Leaving it out, then arguing over whose courts |
| Signatures | A line for each party with printed name, title and date | Only one side signs |
The scope of work is the section that causes the most fights, so spend the most time on it. If an itemized estimate, a drawing or a spec sheet already describes the job, attach it as an exhibit and say in the contract that it's part of the agreement.
The fine print that earns its place
- Entire agreement. The written contract replaces earlier conversations, so check that everything you promised each other is actually in it.
- Changes in writing. Changes count only when both sides sign them. See amendment and how to write a change order.
- Severability. If a court strikes one clause, the rest survives. See severability.
- Notices. Where formal notices go and whether email counts.
- Electronic signatures and counterparts. Both sides agree the contract can be signed electronically and in separate copies. See counterpart.
- Indemnity and liability limits. Who covers losses to third parties, and any cap on damages. Read these slowly when the other side drafted the contract; see indemnification.
Write it in plain English
Plain wording isn't only friendlier; some states require it for consumer deals. New York requires residential leases and contracts for goods or services bought mainly for personal, family or household use to be written clearly and divided into captioned sections. The rule doesn't apply to agreements involving more than $250,000.
Written in a clear and coherent manner using words with common and every day meanings;
- Use numbers and dates. "Within 10 business days of the deposit" beats "promptly".
- Name things once and stick to it. If it's the Customer on page one, don't switch to the Owner on page three.
- One idea per sentence. Long sentences stacked with conditions are where disputes hide.
- Say what happens if. The payment is late, the material is back-ordered, the customer cancels. Most fights are about a scenario nobody wrote down.
Rules for particular contracts
General contract law is only the floor. Some kinds of deal come with wording a statute requires:
- Home improvement work. Many states list terms a residential contract must contain, from license numbers to cancellation notices. See the rules for California, Texas and Florida.
- Sales made at the customer's home. The FTC's Cooling-Off Rule requires a written cancellation notice for many in-home sales. See can you cancel a contract after signing.
- Leases and employment. Housing and job contracts carry their own disclosures. See can you e-sign a lease and can you e-sign an employment contract.
A checklist before you send it
- Both parties' full legal names and addresses are right.
- The scope would make sense to someone who wasn't in the conversation.
- The price, taxes and anything excluded are stated.
- The payments add up to the total.
- Every deadline is a real date or a set number of days from an event.
- There's a way to change the work and a way to end the contract.
- Any notice your state requires for this kind of deal is included.
- Whoever signs for a business has the authority to do it.
- Every exhibit the contract mentions is attached.
- There's a signature and date line for every party.
For a guided version, the free contract checklist builder lists the sections a given kind of contract needs and lets you tick them off as your draft covers them.
When to use a lawyer
- The stakes are high. A deal you couldn't afford to lose, or one that runs for years.
- Real estate, lending or selling a business. These carry rules beyond contract law, and some documents need a notary or recording.
- Restrictive clauses. Non-competes, exclusivity and ownership of intellectual property are treated differently from state to state.
- The other side's lawyer wrote it. Their draft protects their client. An hour of review before you accept indemnity or liability terms is cheap insurance.
- A form you'll use hundreds of times. Having your standard contract reviewed once costs less than one dispute over it.
Getting it signed
A contract nobody signed is still a proposal. Under the federal ESIGN Act and the state UETA laws, a contract can't be denied legal effect just because it was signed electronically, so you can send it the same day you finish writing it.
- 1
Save it as a template
Upload your contract as a PDF or Word file once and save it as a template, with text fields for what changes each time: names, price, dates.
- 2
Or start from the library
Pick a starting point from the contract templates, such as a service agreement or an independent contractor agreement, and adapt it to your deal.
- 3
Send it or sign together
Email a signing link, or hand over your phone with in-person signing. Signers don't need an account.
- 4
Keep the signed copy
Everyone gets the signed PDF with a certificate of completion showing who signed and when.
General information, not legal advice
Contract law is mostly state law, and your industry may require terms this page doesn't cover. Use this structure to draft and check your own contract, and have a lawyer licensed in your state review anything with high stakes or unusual terms.
Questions? Answers.
Can I write my own contract?
Yes. No rule says a lawyer has to draft it. What makes a contract enforceable is agreement on clear terms, something of value on each side, parties able to agree and a lawful purpose, plus any formality your state requires for that kind of deal.
Does a contract need to be notarized?
Most don't. Notarization is required for particular documents, such as deeds and some affidavits. See do contracts need to be notarized.
What makes a contract invalid?
Common reasons are a party who lacked capacity, terms too vague to enforce, an illegal purpose, a signature obtained by fraud or pressure, or a missing signed writing for a deal the statute of frauds covers.
How long should a contract be?
As long as the deal needs. A one-page agreement covering scope, price, payment, timing, changes and signatures beats ten pages of borrowed wording nobody read.
Sources
- N.Y. General Obligations Law § 5-702, plain language in consumer transactions · nysenate.gov
- 15 U.S.C. § 7001, ESIGN Act general rule and consumer consent (govinfo) · govinfo.gov
- Uniform Electronic Transactions Act (1999), final text (Uniform Law Commission) · uniformlaws.org
- FTC, Buyer's Remorse: The FTC's Cooling-Off Rule May Help (16 CFR Part 429) · consumer.ftc.gov
General information, not legal advice. Laws change, and how they apply depends on your situation. For advice about a specific document, talk to a lawyer licensed where you are.