Contract Drafting Dos and Don'ts for Alberta Businesses

Chace Stokowski
Jan 2
2 min read

Updated: Feb 13

Contract drafting is a critical aspect of running any business. Whether you are finalizing a partnership agreement, vendor contract, or employment agreement, getting the details right from the start can save you time, money, and potential disputes down the road. Here are some dos and don'ts to keep in mind when drafting contracts for your business.

Dos:

Clearly outline the parties involved: Make sure to accurately identify all parties involved in the contract, including their full legal names and contact information. This will help avoid any confusion about who is bound by the terms of the agreement.
Define the scope and objectives: Clearly articulate the purpose of the contract, the rights and obligations of each party, and the specific deliverables or services to be provided. This will ensure that both parties have a clear understanding of what is expected of them.
Include specific terms and conditions: Be detailed and specific when outlining the terms and conditions of the contract, including payment terms, deadlines, warranties, and remedies for breach of contract. This will help protect your interests and minimize potential disputes.
Consult with a lawyer: Consider seeking advice from a corporate lawyer who specializes in contract law. A corporate lawyer can help you navigate complex legal issues, ensure compliance with relevant laws and regulations, and draft a contract that is tailored to your specific business needs.

Don'ts:

Rely on templates without customization: While templates can be a useful starting point, avoid using generic contract templates without customizing them to fit your unique business situation. A one-size-fits-all approach may not adequately protect your interests or address specific concerns relevant to your business.
Use vague or ambiguous language: Avoid using vague or ambiguous language in your contracts, as this can lead to misunderstandings and disagreements between parties. Instead, use clear and precise language to ensure that the terms of the contract are easily understood by all parties involved.
Neglect to include dispute resolution mechanisms: It's essential to include provisions for resolving disputes in your contracts, such as mediation, arbitration, or litigation. Having a clear process for resolving conflicts can help prevent costly legal battles and preserve business relationships.
Forget to review and revise: Contract drafting is an iterative process, and it's essential to review and revise your contracts regularly to ensure they remain up to date and reflect any changes in your business operations or legal requirements.