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How To Gain Maximum Protection When Drafting An Agreement This may seem like general information but it really is so important to get the proper description (and statement) of the parties’ perfectly correct the first time. Consider this: you may not in (everyday talk) address somebody quite so formally in conversation or say in a business letter for example. This usually is the case if it's somebody you know really well. However, you should still insert in the agreement their "complete name" instead of just a shortened version. For instance, type and/or write "Dr. Peter J. Jones" instead of saying "Pete Jones." In the unlikely event your agreement ever gets involved in litigation then having the correct (and full) name of the parties is crucial. Another important reason for having an agreement include the right and complete usage of "names" is that it clearly outlines the parties to the agreement and the terms and conditions of an arrangement. By taking time to establish that ALL information (and pertinent) details are correct you will have peace-of-mind because there can be NO question about the parties' intentions later. This is especially so whenever particulars have been changed and/or forgotten. Important: Don't hesitate to correctly identify both parties by the location of their (current) residence. As previously mentioned, as for example: When you fill-in an agreement as "Dr. Peter J. Jones" clearly state the party is "Dr. Peter J. Jones, with the current residential address of XXXX Whatever Street, Los Vegas, Nevada???" It's really crucial that you clearly define the full and proper name(s) of the parties when you're preparing a legal agreement. In a case where you're doing business with a company, and especially if its incorporated, make sure that you ask for an original copy of the articles of incorporation to verify that you have the name correctly. Because there's millions of registered businesses and corporations in America, and it's possible to insert the wrong name in the agreement because of "subtle differences" in names which are very similar.
In some cases it may be almost impossible to bring about a successful legal case for say "breach of agreement" because a knowledgeable lawyer representing the other party, claims you've actually been dealing with some other company and not that of his clients. For example, you may have entered into an agreement for a specific business service on behalf of your customer, say ACE Fencing Supplies. You may think that the correct company name is ABC Fencing Supplies, but the actual name on file lodged with a government agency may be ACE Fencing & Supplies Inc. This may not seem like a big difference to you but in a court of law the judge may have second thoughts about awarding you damages if for argument sake, your customer doesn't pay you. The sad fact is: a customer who doesn't wish to pay you under the terms and conditions of your agreement could also be ready to say: (or my business) so I don't owe you a single cent." An equally as important issue for you to consider when preparing an agreement whereby you enter into business dealings with another local business is that you properly identify the state of where the business is actually registered. You should ALWAYS clearly state in the agreement the full name of the business and precisely where its offices are located. Remember that the more precise you are in "identifying the parties" the better the chance of avoiding any legal problems if it ever ends-up in a court of law. The ALL important "Consideration. You should thoroughly review any agreement that you're about to enter into. Why? Because you should spot somewhere early in the agreement a statement that both parties agree on a certain amount of money, goods, products, services, etc, as a "consideration." The notion of a "consideration" in a legal agreement has a long history in the law courts of this land. A "Consideration" simply denotes something of value in the eyes of the law. An exchange of "consideration" whether it be financial or something else of "Value" is crucial for the agreement to be legally enforceable. Both parties (dating and siging an agreement) must "give and receive" something of value in the eyes of the law. That "something of value" could be either one party hands over (that they'd not otherwise be indebted to hand over) or it could be "some right" that they give up (that they'd otherwise have been entitled to exercise). For example, if you agree to buy a car for cash then you must agree to "hand over" the cash directly to the seller, and the seller agrees to "hand over" the car to you. By doing so there is a "consideration," (or sufficient monetary value) for the agreement to be enforceable. Here is another typical example. It is a mutual release of claims. Let’s say, you damage a parked car (of course, it happened by accident) and you offer to pay the owner $1,550.00 to settle out of court. In a case like this, you agree to "hand over" the $1,550.00 to the owner, and the owner agrees that they will not issue you with a summons. In this case, you MUST get the owner to sign a written "release of liability" or a "general release form" to prove you've settled this matter between both parties mutually. Now, in this case, the "consideration" from your side ($1,550.00) and the consideration from the owner's side (giving up the right to sue for damages.) Even though the owner did not give up anything physical, there is "consideration" to support the agreement because the owner relinquished a legal right. Term and Termination: A powerful clause you always insert in an agreement is the "Term and Termination" provision. An agreement usually runs for a specific term or time period, and that period should be identified in the agreement. The term may be stated, in a simple wording such as: as of the date and signing of this Agreement" What happens once the agreement term has expired? You might think that the agreement is finalised (and, usually it is) but in some circumstances (and, in some states) an agreement may be deemed to automatically "renew" itself for an extended period of time and in most cases its equal to the initial term. This could be true if the parties continue to "act" once the term has expired. However, this is NOT usually the case where it involves any business transactions or dealings in property. For example: if you were to continue selling a certain brand of product, and the customer agrees to continue paying (in accordance with the terms as outlined in the agreement one party may reach a conclusion that the signed agreement "has been extended" and/or renewed by the conditions as agreed upon by both parties), and for this reason, it may be essential to clearly state if you intend for the agreement to be renewed. Source: http://www.giveawaylegalforms.com/ Terms:
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How to prepare legal forms (click 
hen preparing a legal agreement, you should ALWAYS pay close attention to the proper description and statement of the parties. In addition, the "name(s)" of the persons (or business entities, and in some instances "both") which are going to be part of the agreement.