There are several basic rules to writing a good agreement:
Get it in writing. A written agreement is usually much more solid than an oral agreement. Oral agreements are difficult to prove in court and often are not even legally enforceable.
Keep it simple. Write your agreement in plain English so that all parties understand the terms and conditions of the agreement.
Identify each party correctly. Make sure you use the exact legal names of every party involved in the agreement. For example, a corporation, LLC or other entity should be referred to by its full official name.
Write out the details. Don't leave anything out. You should spell out exactly what it is you are agreeing on. If you have changes to the agreement, you can always write in additional terms and both sign the additional portions of the agreement.
Specify payment obligations. You should always be specific as to the amount of payment, when it is due, what happens if the payment is late, and the payment method.
Agree on ways to terminate the agreement. You should agree beforehand as to when the agreement expires and whether one party or all parties have to agree to terminate the agreement and for what reasons.
Agree on ways to resolve disputes. You may want to specify in the agreement of how you are going to settle any disputes that arise between the parties. Do you want a third party to get involved as arbitrator or mediator? Lawsuits can be very expensive, so agreeing beforehand as to how to resolve disputes can save a lot of time and money later.
Pick which state's laws will govern the agreement. If you and the other parties are in different states, you may want to pick one of the state's laws to govern the agreement. Each state has different laws, so look into it and decide together.
