Names of all parties involved, spelled correctly, and with proper titles.
Date the contract was drafted.
Your terms.
What you want in return.
Procedures for litigation and legal breaching of the contract.
Place for signatures.
Legally required statements or terms. (If this is a contract with a governmental agency you may have to include a statement of non-discrimination. Check the UCC and government websites for specific wording requirements.)
Step Two: The Negotiation
The negotiation process is perhaps the most complicated step of the contract process. In some situations the negotiation process isn’t necessary as the terms in the contract are non-negotiable and are standard to everyone who enters into it. This situation is common for warranties offered and most leases. However, if you are entering into a contract that will be negotiated you will need to prepare your case before coming to the negotiating table.
First make out two lists. One list will be of items that you are not willing to negotiate, such as the price you are willing to pay and the amount of time that you have for the project to be completed in. The second list will contain the things that you are willing to negotiate such as payment options, location of work, and subcontractor options.
In addition to knowing what points that you are and are not willing to negotiate on, you should also have done a bit of research to know what laws are applicable to your situation; what federal, state, and local zoning restrictions apply; and any other elements that may influence how the contract is handled. Knowing this information will help you draft a contract that will be legally enforceable and that will comply with zoning and legal restrictions.
When you start to negotiate you will want to keep the discussions focussed to the issues at hand. Have goals of what items of the contract that will be accepted by the end of the day, the hour, etc…You will also want to try and keep the tone of the negotiation positive. Do not enter the negotiation wanting to cheat the other side out of a fair deal. This will only hinder your attempts to forge a good contract. Listen to what the other side wants and needs from the deal, and then present what you want and need from the deal. Try to find a median point that benefits both sides of the agreement. Use a checklist to help keep the topics focused and on course throughout the negotiation process.