How to Write a Business Contract

Start with the deal in plain English

Before opening a template, write the deal in two sentences. Who is doing what, for whom, by when, and for how much. If you cannot describe it in two sentences, the contract will not save you — go back and clarify the deal first.

The five clauses every contract needs

Scope of work — exactly what will be delivered.

Payment terms — how much, when, and what triggers payment.

IP and ownership — who owns the work product.

Confidentiality — what stays private.

Termination — how either side can walk away cleanly.

What people forget

Governing law (which state's law applies if there is a dispute), notice provisions (how the parties send each other formal notices), and a clear dispute-resolution path (court or arbitration). These rarely matter — until they do.