Houston Contract Drafting Attorney

Skillfully drafted contracts are the foundation of good business. Conversely, poorly drafted agreements can result in unnecessary litigation, substantial damages, and destroyed relationships. The counsel you hire to assist with your contract drafting will make a difference in your company’s bottom line. Capstone Legal Strategies works with businesses of all sizes to draft and execute valid, enforceable contracts. Find out why so many clients trust our guidance.

The Importance of Effective Contracts

The primary purpose of contracts is to protect the rights and interests of the parties to the agreement. A good contract allocates risks, liabilities, and benefits between the parties in a mutually agreeable manner. When a business enters into an agreement, it is imperative that it not only understands the contractual terms but that those terms minimize the likelihood of potentially disastrous litigation.

Contracts with vague, ambiguous, undefined, and easily misinterpreted words, clauses, and provisions are a recipe for disaster. So are agreements that leave out important details that clarify exactly how a deal should transpire. These contracts are often the result of inept negotiations between the parties and a misunderstanding or misapplication of the law. A party could unwittingly take on more risk than it intended to, resulting in financial losses or even ruin.

For these reasons and others, you need a law firm that understands the needs of your business and how to effectuate them with strong contracts.

Elements of a Valid Contract

A contract essentially represents a meeting of the minds between or among parties, but the formalities are much more nuanced. A binding contract is formed when the following basic elements are present:

Legal subject matter

Before negotiations begin, the parties should confirm that the subject matter of the agreement is legal. While some contract subjects are obviously illegal, others are not so clear. A contract may go against public policy or concern a matter over which the parties simply have no right to bargain. For example, someone who does not actually own a piece of land cannot execute a valid real estate contract to sell it to someone else.

Offer and acceptance

This is the core of the meeting of the minds. One party must offer terms and the other must accept them. An offer should consist of sufficiently detailed and precise terms that clarify exactly what the contract is about. It will also identify the parties and state what the consideration is (see below). As a matter of good business practice, offers should be written and conveyed to the individual who can legally bind the other party.

The party who receives the offer must then accept it. An acceptance should provide evidence that the other party has understood and agreed to the offer. If the party that received the offer accepts it on condition of additional terms not included in the original offer, then that party has made a counteroffer. A contract has not yet formed; the other party must then review the counteroffer and decide whether to accept it.

Consideration

Parties to a contract assume an obligation but also benefit from the transaction. Consideration makes this possible. It is something of value such as money, goods, or services that is exchanged between the parties. For example, a simple employment contract imposes duties on both parties. The employer must pay money while the employee must perform labor. But both parties also benefit from the transaction: the employer receives the value of the labor while the employee receives monetary compensation.

Terms to Include in Your Contract

The above items are the bare essentials of a properly executed contract. However, much more should be included to protect a party’s rights and interests. The following is a non-exhaustive list of terms that can be negotiated and drafted into a contract: 

• Identification of the parties: The contract should clearly state who the parties are, along with their roles (e.g. buyer and seller). When one of the parties is a corporation its formal legal name should be used to avoid confusion and to legally bind the company.
• Subject matter: A description of the subject matter or scope of the agreement is essential to make sure that one party is not obligated to perform too much or too little. Stating the goods to be sold or services to be rendered will solidify the purpose of the contract.
• Precise language: All terms, conditions, obligations, and requirements should be clearly and specifically stated in the contract. Ambiguous and vague language runs the risk of multiple interpretations, a breeding ground for disputes.
• Terms and conditions: Payment, delivery, and performance terms are included here, in addition to other specific terms and conditions to which the parties agree. These are often the product of extensive negotiations involving attorneys.
• Consideration: A statement of consideration is essential, but it should be adequately defined and reasonable. Consult your attorney for assistance.
• Performance requirements: It is in the interests of both parties to stipulate what qualifies as adequate performance under the contract. This includes but is not limited to the quality of the goods, delivery timelines, and anything else that allows the parties to measure compliance.
• Breach and termination: Defining what constitutes a breach, and its consequences, helps the parties hold each other accountable. There should also be grounds that permit a party to terminate the contract.
• Duration: Some agreements are only intended to operate for a limited amount of time or while certain conditions persist, after which the contractual relationship automatically terminates. If this is a term you wish to include in your contract, be sure your attorney knows.
• Dispute resolution: Including a mechanism for handling disagreements, such as mediation or arbitration, can provide a process for resolving conflicts without the need for litigation. Your business attorney will help you choose the most appropriate dispute resolution terms.
• Governing law: A statement of the governing law helps the parties determine which jurisdiction’s laws and rules will apply in the event of a dispute or lawsuit. This avoids needless speculation over how the contract will be interpreted.
• Confidentiality and non-disclosure: Sensitive information is often exchanged between parties to a business contract. Confidentiality and non-disclosure terms protect not only the parties themselves but others, such as customers.

How Our Legal Team Can Help

Expertise and Precision

Our team of skilled attorneys brings extensive knowledge and expertise in contract law. We understand the intricacies of Texas law and ensure that every contract we draft is comprehensive, enforceable, and tailored to your unique situation.

Customized Solutions

No two clients are alike, and neither are their contract needs. We take the time to understand your objectives and tailor our services to meet your specific requirements. Whether you are a business owner, entrepreneur, or individual, we provide customized contract solutions that protect your interests.

Attention to Detail

The devil is in the details, especially when it comes to contracts. Our meticulous approach ensures that every clause, term, and condition is thoroughly reviewed and clearly defined. We leave no stone unturned in our quest to provide you with airtight contracts that stand up to scrutiny.

Comprehensive Services

From drafting new contracts to reviewing and revising existing agreements, we offer a full range of contract services. Our goal is to ensure that your contracts are not only legally sound but also aligned with your strategic objectives.

Our experienced contract drafting attorney is ready to assist you and your organization with the following:

• Negotiations: We take the time to understand your concerns and interests, and then integrate them into productive negotiations with the other party or parties.
• Assessing risk: Because negotiations are usually a process, you need to be apprised of risks throughout all stages of discussions along with how they can be mitigated.
• Drafting and review: Our team will draft offers, counteroffers, and the contract itself, plus review proposed terms and agreements from other parties.
• Counsel: We will explain the legal consequences of certain terms (or the exclusion of them) and how they might affect your business.
• Settlement negotiations: Disputes between the parties can always settle, even if a lawsuit has been filed and a trial date has been set.
• Contract modification: The time may come to adjust the terms of your business agreements by carefully modifying them, and we are prepared to help with this step.

Our Contract Drafting Services

Business Contracts

Running a business involves numerous contracts that govern your relationships with partners, clients, suppliers, and employees. We draft and review all types of business contracts, including:

• Partnership Agreements: Define the roles, responsibilities, and profit-sharing arrangements between business partners.
• Operating Agreements: Establish the framework for LLCs, outlining the management structure and operational guidelines.
• Service Agreements: Detail the terms and conditions of services provided, ensuring clear expectations and responsibilities.
• Non-Disclosure Agreements (NDAs): Protect your confidential information and trade secrets with enforceable NDAs.
• Employment Contracts: Set clear terms for employment, including duties, compensation, and termination conditions.
• Vendor Contracts: Secure favorable terms and protect your business interests in supplier relationships.

Real Estate Contracts

Real estate transactions require precise and enforceable contracts to avoid disputes and ensure smooth transactions. Our services include:

• Purchase Agreements: Detail the terms of property sales, including price, contingencies, and closing conditions.
• Lease Agreements: Protect the rights of landlords and tenants with clear and fair lease terms.
• Construction Contracts: Outline the scope of work, timelines, and payment terms for construction projects.
• Property Management Agreements: Define the responsibilities and compensation for property managers.

Personal Contracts

Protect your personal interests with well-drafted contracts for various situations:

• Prenuptial and Postnuptial Agreements: Clarify financial arrangements and protect assets in marriage.
• Separation Agreements: Define terms for separation, including property division and spousal support.
• Settlement Agreements: Resolve disputes with clear and enforceable settlement terms.

Contact Our Houston Contract Drafting Attorney

Regardless of what types of contracts you need assistance with, Capstone Legal Strategies can provide the dedicated legal representation that you and your business deserve. To get started or to learn more about our services, give us a call today.