Contract drafting is an art.

Yes anyone can in theory draft a contract.

Like anyone can go out onto a golf course and hit a golf ball.

But some lessons and guidance on the basics and some serious practice will ultimately yield real benefits.

So following on from yesterday’s post about what makes a good legal contract, I thought I’d expand it out more about what essential clauses should be in one.


So I thought I’d point out a few essential clauses that form the basis of any good contract.

  • Always make it clear who the parties to the actual contract are. For example, are they an individual or a company or trustees?
  • A short recital section at the beginning. This helps tell us what the Contract is all about and some basic facts about the parties.
  • A good definition clause to make clear the meaning of any uncertain terms within the contract.
  • The date the contract actually commences.
  • The relationship between the parties e.g employer / employee/ contractor.
  • What the parties are actually going to perform for each other – i.e the terms.
  • Clarity about how much is being paid, when and by whom and how?
  • A clause about taxation issues such as GST.
  • How confidential information and intellectual property is to be treated.
  • When the contract ends.
  • How the contract can be terminated early.
  • A clause about expenses and who pays for what.
  • A practical dispute resolution clause.
  • Standard provisions that deal with issues such as variation, acts of God and jurisdiction.
  • a legal binding execution clause that equates to the parties entering into the Contract.

And anything else that is specific to your particular business circumstances.



We came across an interesting blog called Adams On Contract Drafting by Adjunct Professor Ken Adams that you might be interested in. Click here to access it.

Call us now on 9528 0235 for an obligation free discussion about your contract.

We have 2 handy office locations.

One in Jannali in the Sutherland Shire and the other in Crows Nest on the lower north shore.

Paul Ippolito is the Principal of Ippolito Lawyers and an experienced commercial lawyer. He has also lectured for nearly a decade in commercial and corporate law at The College Of Law in NSW. Paul has previously studied Contracts at Harvard University through its Edx program.

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