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Naming the Parties - You begin the contract by naming the parties in the agreement. This may seem obvious, but attorney Mark Cohen of Colorado writes in his article Ten Things to Consider Before Signing a Contract that "a common error is to use the name of a person representing an entity rather than the name of the entity."

Legal Contracts - Under state laws, only a few category of contracts must be in writing, such as a mortgage contract or contracts covering more than a year. It's still a good idea, however, to have a written agreement for business transactions beyond an ordinary sale of goods. There is no law requiring a lawyer to write your contract. If the transaction is relatively simple, the contract can also be simple. But you also have to pay attention to certain details to avoid issues arising later.

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