Drawing up an official contract is not something to take chances with, but is it really necessary to hire a lawyer every time? Can you make a legal contract without a lawyer? What does it take to make it official? When should you hire a lawyer, and are there times you could simply use a template instead?
Here, we have put together a guide on when it is okay to use a DIY contract template and when it is better to go through a legal professional. We have also included some pros and cons of both solutions- plus a few tips to make picking the best option for you a bit simpler.
What Are DIY Contract Templates, and How Do They Work?
Contrary to popular belief, you do not need a lawyer to make a contract legally binding. Anyone can draft a contract and have it signed, and as long as they follow all the correct procedures, it will hold up legally.
A DIY contract template is an example contract that includes the crucial wordings of a specific contract type. Businesses or individuals can use these templates to guide them through creating their own. All they do is change the details to suit their deal.
While they are not without limitations, they provide various benefits in certain situations.
Benefits of DIY Contract Templates
- Saving Time and Money
The main reason people use contract templates instead of hiring a lawyer is to save time and money. You don’t need to pay an attorney, and you don’t need to spend as long working on the wording.
Templates are often free to download. They come with prewritten standard clauses, terms and conditions, and more. All you do is pick the parts you need, add them to the framework, and tweak them as necessary.
- Quick and Easy to Access
Convenience is king these days, and it helps to have instant access to a contract template whenever you need it. If something time-sensitive pops up and you don’t have a business transaction lawyer on hand to do it for you professionally, a quick search online will do the trick.
- Education, Engagement, and Empowerment
A great advantage of using templates is how they familiarize people with the contract process, what goes into it, and what it means for their business.
When you write a contract yourself using a template, you know a lot more about the agreement and are more empowered to negotiate terms and tailor clauses as you build out the framework.
Downsides of DIY Contract Templates
- Lack of Professional Input and Insight
You may know your business best- and what it needs from its contracts- but a lawyer who specializes in contract law knows more about the legal side of things.
Templates don’t consider local laws, industry-specific regulations for business contracts, or the personal nuances of your circumstances. Tweaking prewritten content without a lawyer to confirm the legality of it all could lead to complications later.
- Complex Legal Matters May Not Be Covered
Remember, templates are quite general, and some legal issues and business contract specifications may not be covered. When it comes to more intricate matters, it is best to seek legal advice from a law firm that specializes in contract law.
This helps protect your interests and avoid difficult disputes further down the line.
- The Legal Protection is Limited
While contact templates cover a lot of the bases for simple legal protection, they don’t comprehensively cover all the possible risks, contingencies, and complications for your specific situation.
Breach of contract, legal disputes, and problems with business relationships can put contracts to the test, and you may be glad of lawyers and their services with your contracts come that time.
Hiring a lawyer to draft your agreement addresses all that and protects your interests more effectively in the long run.
When to Use a DIY Contract Template
DIY contract templates are great tools for a simple and low-risk business agreement. If you need something official and legal on paper and the terms are simple, it could make sense to save some money and use a template.
Just remember that you still need to understand and follow the correct procedures to make the contract legally binding (offer and acceptance, consideration, intention, and capacity). If you are confident you can do that without legal services, a contract template could be a viable option.
When It Is Best to Hire a Lawyer
Whether you are handling a business transaction, real estate property agreement, exchange of goods and services, or any other type of contract- having a law expert draft, tailor, and review your contracts is advisable if the matter is not straightforward.
Contacts for complex legal matters and high-stakes agreements are worth investing in for professional legal guidance. It means that all parties can sign with confidence.
Important Considerations when Choosing Between a Lawyer and a DIY Template for Your Contract
- How confident do you feel using a template without legal help?
- What risk is involved should there be an issue with your contract?
- How complex is the agreement, and how much detail needs to be included?
- Do you know all the local laws and regulations in your area?
- What budget do you have to work with to get the contract drafted?
- How quickly do you need it?
In short, think about how easily you could do it yourself, how comfortable you feel doing it, and what risks you expose yourself to if things go wrong and you don’t have a lawyer involved.
Summary
A contract must be detailed and comprehensive, but you may not need legal assistance when it comes to simple matters. That said, it is in the best interest of your business to ensure no risks are taken with the law and legality of your contracts.
DIY template contracts offer fast, free, and accessible frameworks to give people an alternative. They provide experience and education- but they are not designed for complex legal arrangements.
If you want a quick, low-cost solution for a low-risk agreement, why not try a template first? For complicated business deals with many clauses, nuances, and potential risks, it is better to seek help from a contract law professional.
