Even without recessions, pandemics and a ‘cost of running a business’ crisis, not everyone can afford to invest in the legal documents to support their business. However, there are five issues to avoid with writing or using contracts.
Copying content
If you copy and paste your contract content (irrespective of the quality of your source) you may end up with a contract that is far too long or just doesn’t hang together. I’ve reviewed a few of these – they are easy to spot and relatively easy to resolve with some decent editing.
1. Wordiness
Your contract could be saying in 100 words what could be said in just a few words. You need brevity if you want to move towards plain language. Clients don’t like verbosity and neither do judges. For a good example to be inspired by, see Monzo Bank (and their post on how they did it).
2. Cobbled together
Your terms could become a cut & shut contract (eg Frankenstein’s monster) picking terms from various sources and suiting nobody. Like the ferry terms that appeared to reflect a pizza company. This is essentially what ChatGPT is doing when it creates contracts, cobbling together a plausible text from its range of data sources. As Ken Adams says, it is copy & paste by another name.
Blind faith
Not all contract wording is worth copying… just because law firms will adapt precedents, contract automation platforms will use clause libraries, standard forms have model documents etc that doesn’t necessarily mean a better contract.
3. The Myth of Tried and Tested
There is a general myth that ‘standard contract language’ which is tried and tested is special and won’t cause ambiguity or confusion. The argument is based on the fact that it is modelled on clauses that have been before the courts and we know what the judges said. But what it really means is that language has failed spectacularly in the past!
A better norm to aspire to is plain language which cannot be misunderstood.
4. Fool-proof or Rogue-Proof?
Even if you create a perfectly clear contract, that does not mean it is foolproof or watertight. A contract is not your safety-net, but just one of your set of tools to help you do business. You need to decide the purpose of your contract before you consider the best way to meet that purpose.
Process not trust
Contracts are not about cornering your client, bullying them into submission and then rubbing your hands in glee… muttering mwah ha ha (an evil laugh) under your breath.
5. Doesn’t Reflect Your Business
A contract designed solely for legal enforcement is missing out on so many positive aspects, such as how to break up (without creating a messy divorce), the balance you want to strike, or your values as a business. Terms can do all of this if they’re yours. Consider how best reflect your brand with a process that is positive and enhances trust.
What should you do?
Don’t think of contracts as bits of boring paper. Think of them as business-critical tools that can boost your brand and profits if you get them right.
