Use of plain language in contracts

Viktor Kessler
on
September 20, 2024
4
min. read

What is plain language in contracts?

Plain language in contracts means writing that’s clear, concise, and free of legal jargon, making it easy for anyone to understand, even without legal training. This approach is essential in contract drafting because it reduces misunderstandings and speeds up negotiations, ultimately saving time and resources.

Benefits of using plain language in contracts

Improved understanding

Plain language makes contracts easier to grasp by using straightforward terms and clear sentence structures. For example, instead of using phrases like "notwithstanding the foregoing," a contract can simply say "despite this." This kind of clarity helps everyone involved fully understand their rights and obligations without needing legal expertise.

Reduced misinterpretations

Minimizing the risk of misunderstandings is one of the key advantages of plain language. By making the terms of the contract clear, you can prevent disputes. For instance, GE Aviation cut negotiation time by 60% by adopting plain language in their contracts, showing how clarity can streamline processes and reduce conflicts.

Enhanced compliance

When contracts are written in clear language, it’s easier for parties to comply with their terms. People can quickly understand what they need to do, which helps ensure that all obligations are met without confusion or oversight.

Increased accessibility

Plain language makes contracts more accessible to a broader audience, including freelancers and small businesses that may not have legal expertise. This accessibility allows smaller businesses to confidently engage in contractual agreements without relying heavily on legal counsel.

Practical tips for implementing plain language

Simplify sentence structure

Keep sentences short and avoid complex structures. Aim for sentences of around 14 words, as studies show this length is easier to understand.

Use common words

Replace legal jargon with everyday language. For example, use "before" instead of "prior to" and "end" instead of "terminate." This makes the contract more approachable and easier to read.

Organize content logically

Structure your contracts in a clear, logical manner. Use headings and bullet points to make the document easier to navigate. This organization helps all parties quickly find and understand the relevant sections.

Consistent terminology

Use the same terms consistently throughout the contract to avoid confusion. Steer clear of unnecessary synonyms and legalese that can complicate understanding.

Tools and resources

Plain language tools

There are online tools and resources that can help you draft plain language contracts. Platforms like Notch.so offer features that emphasize clarity and simplicity in contract creation.

Templates and examples

Accessing plain language contract templates can provide a strong starting point for drafting clear agreements. These templates are designed to be easily understood and customized to fit specific needs.

Takeaways

Using plain language in contracts improves understanding, reduces misinterpretations, enhances compliance, and increases accessibility. These benefits lead to more efficient and effective contract management.

Explore plain language contract templates on Notch.so and use their tools to draft clear, effective contracts. Consider adopting plain language practices to enhance your contractual processes and reduce legal risks.

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