Benefits of Hiring a Lawyer to Draft Contracts

Did you know in the UAE, verbal contracts are valued as much as written contracts? People often get surprised that oral contracts are binding and enforceable. However, all lawyers recommend it is best to get an agreement in writing. It isn’t easy to prove the existence of verbal contracts. Even written contracts sometimes lead to contract disputes when they are not prepared by or under the guidance of professional lawyers. Contracts drafted and reviewed by lawyers prevent future legal disputes and keep your interests on priority. Before understanding the benefits of hiring a lawyer for contracts, you need to understand the contract, its elements, and the process of drafting.

What is a Contract?

“Contract is a legally binding agreement among the parties that describes their roles, obligations, and rights. The contracts are legally enforceable by law.”

Contracts help two or more parties to memorialize their negotiated terms and the deal formally. If any side fails to perform their obligations, they must bear legal consequences. Regardless of the type of contract, all contracts should contain the following elements:

  • An offer or promise
  • Acceptance of offer
  • Consideration
  • Must identify parties
  • All parties must possess the legal capacity to enter an agreement
  • The subject matter of the contract must be legal
  • Mutual agreement between the parties
  • Mutual understanding of rights and duties

Some of the contracts, which are complex in nature, may contain additional and specific terms and conditions. Some of the common terms of business contracts are:

  • Arbitration Clause
  • Indemnification
  • Assignment
  • Confidentiality
  • Choice of law and forum selection
  • Force Majeure
  • Warranties
  • Timeline
  • Severability
  • Liquidated Damages clause

All the elements mentioned above pertain to either the parties’ duties, the conditional consequences of the breach, or the instructions to refrain from activities that may lead to a breach.

What is Contract Drafting?

Contracts can be formed through writing or by an oral agreement between the parties. Contract drafting, however, refers only to written agreements. The goal of contract drafting is to create a legally binding document, concise, clear, and closely related to the parties’ intentions as much as possible.

Contract drafting involves writing down the terms and conditions of the agreement. The contract formation can go through a series of negotiation and discussion sessions. You may have to go through several drafts before all parties agree to the terms. The drafting process has several benefits. One that stands out is the clarity about the rights and obligations it provides to the parties before entering the contract. Another advantage is it helps prevent the possibility of future legal disputes. Moreover, if disputes occur, the contract can be used as evidence that reflects the parties’ original intentions and obligations.

In situations where contracts are more complex in nature, contract drafting becomes essential. The diligence, accuracy, and detailed approach required by the complex contract led to several discussion sessions before it gets finalized. Thus, the lawyers or legal experts may require time to finalize the terms that give a win-win situation for their respective clients.

Lawyers and legal experts understand UAE law, its implications, and the different ways the clause can be interpreted in courts. We can suggest multiple reasons like these that state the importance of hiring a lawyer to draft your contracts.

7 Benefits of Hiring a Contract Lawyer to Draft or Review a Contract

1. Prevent Forming an Illegal, Unconscionable, or Voidable Contract

All the contracts must be formed, ensuring that all elements are present while drafting. In the absence of which the contract may become illegal or void. For example, you cannot enter into a contract to hire a hitman or make the family of the debtor liable to pay the debts to the creditor without the family member being part of the contract.

2. Preventing a Future Breach of Contract Issues and Other Legal Disputes

There is a possibility that either both or one party enter the contract without understanding their rights and obligations to the full extent. It is more accurate when it comes to people conducting business in the UAE. There are possibilities of delay, financial problems, unexpected circumstances, which may lead to a breach and legal disputes. Experienced lawyers can foresee most of these events and help draft a contract that protects the interest of their clients.

3. Acquiring a Clear Understanding of the Duties and Obligations of all Parties

Obligations and duties are interrelated to the contract. Your lawyers can negotiate on various aspects of the agreement before it becomes binding, including your duties and rights. The contractual obligations can be related to payment, delivery, quality of goods, etc.

4. Protection of Legitimate Rights and Interests

The lawyers use the strategies to clearly specify the rights and legitimate interests of their clients, based on the provisions of the law. While drafting commercial contracts, the lawyers also cover the legal rights and interests of your employees, who may play a pivotal role in fulfilling the obligation to the contract. The legal experts minimize the risks and ensure your organization’s interests are protected to the full extent.

5. Understanding Legal Terms

To many, the legal terms may sound like Klingon. No amount of Google search results can clarify how to understand or use these terms as a part of the contract. However, for lawyers, it is their mother tongue. They can help you understand this legal jargons in context to your agreement in a much clearer and simple manner.

6. Reaching a Neutral Solution

Parties can be biased while they plan to enter into a contract. The lawyer can help bring the balance and provide a neutral contract draft that benefits both parties.

7. Incorporating Additional Terms and Conditions

Commercial contracts can be more complex in nature. Even after the delivery of the goods, many times, both parties are still obligated to some terms. The lawyer can visualize such situations are added additional terms and conditions that minimize the risk of future disputes.

How can we help you?

We offer a one-stop solution for all your documentation needs. We have a specialized department that reviews and draft all the documents required by both individuals and businesses. Our specialized contract lawyers in Dubai, Sharjah, Ajman, RAK, Abu Dhabi, and other emirates can help negotiate, draft, and review your contracts. We are a professional law firm established in 1991 and have assisted thousands of our clients in drafting contracts. Our licensed litigation lawyers can also represent you in courts in case of breach of contract or provide arbitration services to find amicable solutions to contractual disputes.

Our leading law firm specializing in business law and corporate law in the UAE provides legal help in notable practice fields like banking law, commercial law, civil lawsuits, selling and merging, merger and acquisitions, litigation. We defend the interest of all our clients with equal effectiveness and dedication.

Contract Drafting is a Pivotal Step of any Legal Agreement

Contract drafting can be a somewhat complicated process. Whether drafting, negotiation, or review, all require meticulous planning, an eye for details, and a thorough knowledge of the law. An experienced contract lawyer can ensure that your contract complies with the law and is considered legally valid. You can request your lawyers to negotiate additional terms or remove some unfavorable conditions. Hire a contract drafting lawyer for a stress-free legal transaction.

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