A legal contract is a contract between two individuals that is enforceable by the law. Whoever violates or breach a legal contract will face consequences and pay for appropriate fines. This type of contract should be written carefully because any discrepancies may cause a lot of trouble.

There are a lot of things that need a contract. Knowing about the essential elements of a contract is important in making an effective contract. In this post are the things that you need to know to be able to write a contract between two individuals.


How to Write a Contract between Two Individuals

  • Think of the type of contract you will be writing or for what transaction will you be using your contract.
  • You can download and use an online contract template or a sample contract, or create your own. You can use a sample as reference to the contract you will be making.
  • List down the things you need to include and you want to include in your contract.
  • Explain each of the terms and conditions in separate paragraphs.
  • Make sure to write concisely about the important clauses.
  • Spell-check and proofread your work.

How to Fill Out a Business Contract between Two People

  • Read the contract carefully before considering to write anything, just like what you would do with a proposal contract. Make sure that you understand everything that is written in it.
  • Follow instructions that are provided on how to fill out the blanks or boxes.
  • Write clearly and visibly so that whoever reads it will not have a hard time doing so.
  • Avoid erasures and any form of alterations. If you must, follow instructions on what to do for erasures or alterations.


What Is Involved in a Contract?

To make an effective contract, regardless if it is a property contract or house rent contract, it should include all of the following important information.

  • The name of both parties who are involved in the contract
  • The signatures of both parties
  • A detailed description of what the contract is about
  • The start and end date of the said contract
  • How the contract would be renewed
  • Clauses in the contract, like termination or default clause
  • If the contract is about a purchase or a lease, include the payment method and frequency
  • Any additional fees, penalties, or the need for a security deposit
  • The duties and responsibilities that both parties are expected to do
  • The rights and limitations of both parties in the contract

The Obligations to Be Considered While Writing a Contract for Two Individuals & Tips

  • A contract should bind both parties in it so that they will be obliged to follow the terms and conditions that are stated.
  • A contract should be written in a way that is favorable to both parties.
  • The consequences and penalties for any form of contract violation or breach should be appropriate and reasonable.
  • A contract should be written clearly and concisely to avoid any confusion or misunderstanding.
  • To make sure that your contract is complete, try to compare it with a contract template.

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