How to structure your contracts?

A contract can be divided in four parts: (i) Introduction and Recitals, (ii) Main Body, (iii) Signature Section, and (iv) Schedules/ Annexures.

Introduction and Recitals

In the ‘Introduction’ part, you should specify the name of the agreement, the date of agreement, the effective date of agreement, and details of parties. It is advisable to exclude ‘place of execution’ in this part. You can use this section to include definitions also.

A sample template is shown below:

Main Body

In this section, you should specify all clauses, e.g., the scope of transaction, Fees, payment terms, Warranties, Indemnity, etc.

A sample template is shown below.

Signature Section

A sample template is shown below.

In this section, specify the details of authorised signatories and witnesses.

If you are using any schedules or annexures in a contract, you may include it at the end of the contract.

So, if you are ready, let’s move to next lesson.

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