How to Make a Contract

Establish a written contract. It is likely that in everyday life, offers and reciprocal offers are communicated orally rather than in writing (except for real estate transactions). ). However, it is paramount that the contract be established in writing. In the United States, some states require a contract to be in writing to be valid. ^[8] Oral contracts, even if considered legal in your country, are difficult to enforce when one party has ceased to acknowledge the validity of the contract.

• In the United States, all states have determined that certain types of contracts will be governed by “anti-fraud statutes.” Contracts related to land or real estate, contracts established by the executor to pay debts related to property, contracts related to goods whose value exceeds a certain limit ( usually $500), and contracts for a term of more than one year must be made in writing. ^{[9] [10]}
• There isn’t any clear or existing evidence of an oral contract. If you and the other party later disagree on the terms of the contract, neither one will have proof that their opinion is correct. It will be very difficult for the court to make a ruling regarding an oral contract. For this reason, any contract that includes a significant, expensive, or time-consuming counterparty must be recorded.

Name the contract and the parties involved. The contract should be named (a simple example like “contract of sale” or “contract for services.”) You also need to specifically name the parties to the contract. ^[11] If you are using a contract more than once, use abbreviations (such as “buyer” and “seller”) in both contract, provided that the legal names of the parties are shown at the beginning of the contract.

• For example, you could use the name “Contract of Sale” for the sale of your barge to a neighbor. You need to specify the name of the buyer, Nguyen Thi A, and the seller, Pham Van B, at the beginning of the contract.
• If you have a recurring contract, such as one for your photography business, you may want to use acronyms like “photographer” and “client”. In this case, you may specify Nguyen Thi A (hereinafter referred to as “photographer”) and Tran Van C (hereinafter referred to as “client”) when introducing these names for the first time. In the rest of the text, just write “photographer” and “client” instead of the specific name.

Anticipated terms of the contract. The contract needs to specify the exact terms when agreeing. If you exchange goods or services, that goods or services as well as the object of exchange (money or other goods or services) must be clearly shown. ^[12]

• You will also want to provide details about the legal consequences if the exchange is not fully upheld. In particular, consider whether there is a need for “compensation for damages” or penalties for breach of contract. ^[13] There are many different compensation regimes and are suitable for different circumstances.
• Compensation for predetermined damages is a penalty for breach of contract. For example, if a neighbor buys your barge but pays a sum late, the pre-determined damages provision may state that she will have to pay an additional penalty for each week of delinquency. You must be careful with these terms; Courts will not want to enforce provisions that look too much like punishment. ^[14] A late fee is considered reasonable pre-determined compensation; Asking your neighbor to return the barge without considering how much they have paid you so far is likely to be seen as overly punitive.
• Consequential damages are the indirect legal consequences of the breach of contract. Usually, it is very difficult to compensate for these damages. ^[15]
• If the contract involves something of great value or takes a long time to execute, you will want the contract to include a provision for dispute resolution in arbitration or court.
• For example, if you’re selling a barge to a neighbor, you’ll need to specify the barge’s make, shape, make, model, year of manufacture as well as the barge’s name (if applicable) and serial number if maybe. You should also show the exact Vietnamese Dong for the value of the barge and the terms of payment. For example, you can specifically stipulate that the neighbor will pay you 10 million dong per month, for 10 months, until the 100 million dong has been paid in full.

Add a termination clause. Many contracts, especially long-term ones, have termination clauses. This provision allows the parties to legally “get out” of the contract and not be held liable for breach of contract. ^[16]

• For example, a tenancy agreement may specify that the tenant may terminate the tenancy early by giving 30 days’ notice and paying a fee.

Date conventions and other information. To make sure your contract is as specific as possible, make sure you have the correct date convention. If you want to set a specific deadline, but events or actions don’t necessarily happen on an exact date, you can use the phrase “on or before” before that deadline.

• For example, you could write in your contract that your neighbor has title to the barge after the first payment on or before June 1, 2015. She will then pay 10 million. on the first day of each subsequent month, until the sum of VND100 million is paid in full on or before April 1, 2016.
• If this contract is a contract for the sale of goods or property, give a clear and complete description of the goods or assets. ^[17] Example: “Nguyen Thi A agrees to buy a white barge, 6.1 meters long, manufactured in 2010 from Pham Van B.”

Create space for the parties to sign the contract. Leave a part blank for the parties in the contract to sign and clearly write their names. You also need enough space to date the contract.

• You also want a notary (or at least a third person to testify) to testify to the signature and the process of concluding the contract. Even if your contract doesn’t need to be notarized, it can be beneficial to notarize it if a party later sues that the contract has been forged or altered.
  • In the United States, a witness or notary is usually required to be present when making wills, contracts for the transfer of land or real estate, mortgages and deed, depending on state law. ^[18]

Ensure that the parties have the capacity to enter into a contract. To enter into a contract, the parties involved must be adults (over 18 years of age in most states of the United States, and at least 18 years of age under the Civil Code of Vietnam), clearly aware and do not lose mental capacity leading to not understanding the contract content. ^[19]

• Many states in the United States allow a minor to form a contract when an adult signs the contract, and some states may allow a minor to form and enter into a contract for himself.
• Under US law, the ability to discern when making a contract means that a person is not legally bound by a contract if he or she enters into a contract while intoxicated or otherwise impaired. there.

Do not attempt to draft a contract that contains a legal element. A contract will be illegal or void where the goods or services of this contract are illegal. ^[20]

• For example, you cannot contract for the services of prostitution with a person in places where prostitution is illegal. Similarly, you cannot enter into a contract for the sale of a controlled substance, such as opium.

Do not force others to sign contracts. A contract is void when one of the parties is forced, threatened, or blackmailed into entering into a contract. The parties must be voluntary and aware of the establishment of the contract in order for the contract to be legal. ^[21]