How to Make a Document to Settle an Agreement

Reaching a verbal agreement with another person or company is not enough, as specific issues can be forgotten or misinterpreted and the other party may not honor the agreement. For this reason, you need to consolidate the agreement by composing a detailed document, which both parties recognize as an accurate reflection of the agreement. Every detail of the agreement must be stated using accurate expressions and plain language, leaving no room for ambiguity.

Instructions

    • 1

      Write the title of the agreement on top of the first page. Use a larger font size to distinguish it from the main body of the document. The title must make clear what this agreement is about, such as "Copyright Agreement" or "Agreement for Shared Custody."

    • 2

      Include the full name of both parties in the first paragraph. Mention who the parties represent, if the agreement is between organizations, or their address, if the parties take part in this agreement as individuals. On both occasions, mention explicitly how you will refer to the parties within the text, as you cannot possibly repeat these details on every paragraph.

    • 3

      Assign a number to each paragraph. For example, start the first paragraph with "1." the second with "2." and so forth. It is not compulsory, but it helps distinguish between specific issues of the agreement.

    • 4

      Write in plain language so that both parties can understand the contents of the document. For example, prefer "agree" over "concur" and say "allow use of the facilities and their equipment" instead of "allow use of the facilities and the equipment thereof." A party that does not understand the agreement, won't sign it, in fear of being deceived.

    • 5

      Include all details and be specific about each agreed term. An outsider must understand what each party has agreed to do, by simply reading the document. Avoid general expressions, such as "paid in due time" or "provide various services."

    • 6

      Leave space at the end of the contract for both parties to sign. Also, enter the date the agreement was signed. This means that unless stated otherwise within the document, the agreement is in effect from that date onwards.

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