📝 How to Draft an Agreement (Step-by-Step Guide)

An agreement is a legally binding document between two or more parties that outlines the terms and conditions of a mutual understanding. Whether it’s a business deal, service contract, partnership, or employment agreement, drafting it correctly is crucial to avoid future disputes.

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✅ Step-by-Step Process to Draft an Agreement

1. Title of the Agreement

• Keep it clear and concise.

• Example: “Service Agreement”, “Partnership Agreement”, “Rental Agreement”

2. Date of Agreement

• Mention the date on which the agreement is being made and executed.

3. Details of the Parties

• Full name, address, and description of all parties involved.

• Example: This Agreement is made between Mr. Rajeev Sharma, residing at [Address] (hereinafter referred to as “Party A”) and Mr. Arvind Yadav, residing at [Address] (hereinafter referred to as “Party B”).

4. Purpose of the Agreement

• A brief introduction of why the agreement is being made.

5. Definitions (if required)

• Define important terms used in the agreement to avoid confusion.

6. Terms and Conditions

• This is the most important part. Include:

  • Scope of work / subject matter

  • Duration of the agreement

  • Payment terms (if applicable)

  • Obligations of each party

  • Confidentiality clause

  • Termination clause

  • Dispute resolution method

  • Governing law (Jurisdiction)

7. Signatures

• Signature of all parties, along with date and place.

• You can include witness signatures too for extra authenticity.

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🧾 Sample Format of a Simple Agreement

SERVICE AGREEMENT

This Agreement is made on this 16th day of April 2025 between:

Mr. Rajeev Sharma, S/o Late R.K. Sharma, R/o Gomti Nagar, Lucknow, Uttar Pradesh, India (hereinafter referred to as “Party A”);

AND

Mr. Arvind Yadav, S/o Mr. Mahesh Yadav, R/o Alambagh, Lucknow, Uttar Pradesh, India (hereinafter referred to as “Party B”).

WHEREAS Party A agrees to provide graphic designing services and Party B agrees to avail such services as per the terms and conditions below:

1. Scope of Work: Designing logos, banners, and social media posts.
2. Duration: This agreement is valid for 6 months from the date of execution.
3. Payment Terms: ₹10,000 per month to be paid by 5th of every month.
4. Confidentiality: Party B agrees not to disclose any confidential material.
5. Termination: Either party can terminate with 15 days’ notice.
6. Dispute Resolution: Any disputes shall be settled in Lucknow jurisdiction.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

Signed on this 16th day of April 2025:

Party A: ______________________  
Party B: ______________________  

Witness 1: ____________________  
Witness 2: ____________________

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📌 Key Tips While Drafting

• Always write in clear and simple language.

• Use bullet points or numbering for easy understanding.

• Avoid vague words like “etc.” or “as required”.

• Get it notarized for stronger legal validity (especially in business cases).

• Keep one signed copy with each party.