Iron-Clad: 5 Tips for Stronger Contracts

A contract is really only as good as the information that it includes. If your business is using contracts (and it should be), you need to do all you can to make sure they are as close to “iron-clad” as possible. In the eyes of the courts, there is a huge difference between a poorly-written contract and one that is done right. Learn about some of the different things that you can do to help ensure your contracts will be clear and enforceable so your business is protected.

Include Details on All Parties Involved

A contract must be clear regarding who is involved. In the part of the contract that identifies the different parties, make sure to use proper legal names for individuals and businesses. If there are references to vendors or other parties, including their proper names, contact information, and any other details will help to avoid problems, which results in a stronger contract.

If your business is incorporated or a limited liability company, make sure you are signing the contract in your legal capacity, i.e., Member, President, Director, etc.

Payment Information Is Essential

One of the most common areas of contention with contracts is related to payment. When identifying payment information in a contract, make sure to include as much detail as possible. List when payments must be made, how much, what type of payment methods are available, interest, any payment escalation, how payments will be applied and any other relevant details to avoid possible conflict.

Specify How to Terminate the Contract

No matter how well a contract is written, it can’t be 100% binding in every possible situation. There has to be a way for the parties to exit the deal, and including the options for terminating a contract can actually make the rest of the contract stronger. Adding things like what (if any) activities of the parties is reason for the other to terminate, whether penalties are incurred for terminating a contract early, and what process must be followed to terminate is critical.

Address Potential Conflict Now

With most types of business deals, it can be pretty easy to predict what types of potential problems may occur. When this is the case, it is smart to discuss them with the other party, and include specifics on how the issue is to be resolved ahead of time. For example, your contract could include a provision that states that in the event of a conflict regarding the quality of work, a specific third party mediator will be used to resolve the issue.

Let an Attorney Help

One of the easiest things you can do to strengthen a contract is to allow an experienced business law attorney help you through the process. Attorneys have the knowledge and experience needed to make sure everything required is in a contract, and that it is written in a way that will stand up in court. Contact APH Law to discuss your options, and get the legal help you need.

Written by APH Law PLLC


When we founded APH Law PLLC in 2010, we did so out of a desire to connect business owners with more and better opportunities. No matter what industry you’re operating in, creating a strong foundation, preparing for the future, and protecting against challenges are key to long-term success. It is this kind of support that we take tremendous pride in helping businesses.