Drafting an agreement: what are the requirements?

An agreement is usually free of form. That means an agreement can also be oral. For some agreements, however, there are form requirements in the law. For example, the purchase agreement of a property always be in writing. And a deed of assignment must sometimes be in a notarial deed. In addition, in the Netherlands we have the principle of freedom of contract: that means you can contract with anyone about what you want and in the way you want. But there are limits to this too. In this article you will read what you need to consider when drawing up an agreement. 

What is an agreement or contract?

A contract is a multilateral legal act by which one or more parties enter into obligations to one or more others. A contract is created by an offer and its acceptance. By entering into a contract, the parties create rights and obligations. A simple example is when someone agrees to deliver something and another agrees to pay for it. In practice, such agreements are often written down. A written agreement is called a contract. But it can also be much simpler: if you pick up a jar of peanut butter in the supermarket and pay for it, a purchase agreement is created.

What does an agreement say? 

Except in the case of that jar of peanut butter, it is important to think carefully about the content of the agreement. The agreed-upon arrangements should be accurately written down so that it is clear to the parties what to expect. If this is not done properly, you could end up with a dispute over the interpretation of the agreement: for example, about what is meant by a particular provision. Agreements often include provisions in case something goes wrong. Consequences of failing to fulfill obligations, dispute resolution, fines and compensation arrangements are examples of this. 

Agreement drafting by an attorney

It may sound crazy, but it's easier to draft a contract of hundreds of pages than to stick to the core. In fact, regulating too much can often backfire. After all, you can't foresee every unexpected situation. It is often better to regulate only what you want to regulate in the specific case, and leave the rest to your terms and conditions and the law. You won't get a thesis of hundreds of pages with endless footnotes from Lexys Lawyers, but a handy and practical contract that is really useful. And if you're dealing with a very complicated transaction, we won't hesitate to draw up an agreement that covers every aspect of the deal. However, it is still not about quantity, but as always about quality.