How much does it cost to have a contract written?

[bernieshawn]

Well I'm putting some stuff together and I have come to the not fun legal part of things.

I have no experience with this stuff whatsoever - how much does it cost, generally, to have a contract/agreement/"Terms and Conditions" written?

As my service involves bringing buyers and sellers together, I'm pretty sure I would need a VERY solid contract in order to protect my business from problems arising between buyer and seller that don't involve me. Also, I will need to specify a % cut that I will take from sellers transactions and make sure that they are legally obligated to pay.

I'm thinking I would need 2 separate contracts - 1 for the buyers and 1 for the sellers. Not sure though.

Any estimate?

 

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[wade1mil]

Definitely call and ask around (referrals/recommends), but it's probably not a good idea to make your decisions regarding legal matters based on price. Ballpark $200-500 per hour.

 

[bernieshawn]

How many hours does it take? I'm guessing you pay for the consultation time as well as the time it takes to draft it?

I mean if it only takes 2 hours it's not so bad but once you get past about 4 or 5 it becomes a little too expensive, for my situation right now at least. I know this is one area where you definitely want to get it right, though.

 

[wade1mil]

The only person that will able to tell you that is the attorney. The only way you're going to find that out is by talking to an attorney and sometimes they will give you 15-30 minutes of their time for free. Meet with them having some bullet points of what you need your agreement to cover and what you need to do with it. They should be able to give you an idea.

 

[FxInvestor]

I think I could give you some feedback as I have been involved doing something similar in numerous transaction.

First point to consider if whether both buyers/sellers are in the same country. Then obviously the local jurisdiction applies. Sometimes it may happen that different laws in different states might apply in which case you definitely need a lawyer.

I think since you are just starting out, no doubt somewhere down the line you will come across some sort of a NCND ( non circumvention non disclosures) which can protect your interests in the deal. However, just be careful that you dont impose buyer/sellers with these unless you have the definite deal.

If the value amounts on the deals are large and more complicated the deals, you may need some sort of protection against this.

To put together such deals usually requires more or less the same set of papers most of the time. It would be worthwhile to spend some money and get them done as they are worth the money.

 

[Sharp]

Hi!

The terms and conditions, etc. etc. can be written by yourself and agreed by both parties. In any case, I would do all the paperwork, and then consult an attorney for 10 minutes to seek advice. Sometimes, that's all it takes.

 

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[bernieshawn]

Thanks guys.

 

[TadMoore]

Make sure you have all the details worked out and agreed upon before you go to the lawyer. In the past I try and think of all the worst case scenario's and how I want to be protected. For partnership agreements I set up table in word, and put Partner A in one column and Partner B in the other. Then hash everything. This often means you and and your partner just email back and forth until you agree on the document. Then you take it a lawyer and tell them to make it legal. I had a lawyer one time tell me I saved 20 grand doing it that way. (It still cost me $5000 grand)

 

[InMotion]

Make sure you have all the details worked out and agreed upon before you go to the lawyer

Agreed. The more you do upfront the less the lawyer will claim they "have" to do, and therefore should make it cheaper. Lawyers will charge you high rates to just pull a boilerplate contract off their software then change a few things and presto you got $500 bucks for 30 minutes of work. Go into their office with everything you can or you will pay for it.

 

[Sharp]

Hi!

I think its still strange how much money one has to pay for a lawyer. If it were me, I would get back with my partner, create a legal document, get acceptance from my partner, and simply go to a lawyer to get a third party signature. I am not if that is legal or not, but as a beginner, money can be an issue.

 

[wade1mil]

Hi!

I think its still strange how much money one has to pay for a lawyer. If it were me, I would get back with my partner, create a legal document, get acceptance from my partner, and simply go to a lawyer to get a third party signature. I am not if that is legal or not, but as a beginner, money can be an issue.

It's legal (assuming no guns or alcohol are involved), but it may not hold up in court if not done right. I did this once and the judge reprimanded me because my agreement "barely" satisfied the legal requirements. If you're going to get into business, spend the money to protect yourself.

 

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[taichijedi]

I am way late to this, but for posterity:

It may be worthwhile to stop by Staples or NOLO.com and download what you are looking for contract wise. There are packages that come with many of the forms you would need for certain types of business (Landlording, Sales, Property Management, etc.) and there are also a la carte contracts you can purchase (LLC Bylaws, Bill for Sale of Goods, etc.)

These packages vary in price from around $20.00 to around $100 for highly comprehensive packages. This is an excellent starting point for two reasons:

1. You actually get to read the contract, and as such get exposure to any jargon/legalese. Contracts are all about language, so you get the time before talking to your lawyer (who's time comes at a premium) to mentally digest the actual scenarios covered and determine what changes need to be made and what risks are acceptable. When you see your lawyer, you can tell them that the "or" in paragraph 4, sentence 3 should changed to an "and". Once you have read and understand the context of the document, then work out what you want to see in the document as described by Tad Moore, then all that your attorney has to do is review it for accuracy, find any potential fallacies, and notarize it. It will save you a boatload of cash.

2. Many of these form (not so much those which are federally regulated under the UCC) are STATE specific, which means they are designed to function in the jurisdiction you request, as mentioned earlier by FXInvestor. Once you get into International law this advantage really does come off the table, as there are a plethora of laws that come into play (Maritime law, Customs Law, New York Convention, etc.) that can really only be navigated by a lawyer astute in International law.

It is a cheap solution that is reusable, and it gets you prepped to be an educated client when you sit down with your lawyer. You will also feel more confident and at ease as you are not trying to decipher legalese in the chair while you are being billed by the tick (6 minutes.) Of course, always follow through with seeing proper legal counsel, and look for a lawyer that deals specifically with your interests (Real Estate, Tax, International law, Small Business, etc.) Lawyers are like doctors, they all know "the law", and they can find out what they need to know, but they are really specialists who often do one thing particularly well. Spend the time to find the lawyer that does your area well; it may take more time, but it pays dividends in the event you run into trouble.

Also, as mentioned previously, this is one area of business that is not about price; it is foolhardy to forgo having your small business startup documents reviewed by a small business attorney because it will cost you $500, and instead opt to have the criminal defense attorney do them because he charges $300. That $200 you saved will feel like a pittance if a loophole is found that ends up with you getting a judgement against you for $10,000 because the criminal lawyer didn't know it was a loophole and missed it. Businesses are legal structures, and lawyers are like engineers, be sure to hire the right one for your purpose even if it costs a little more.

 

[townhaus]

Why dont you just find someone doing the same/similar to you and copy from them.

Visit their website, copy and edit their documents as needed to make them your own. Im assuming an online business where the legal info is on display and all you have to do is navigate to the page.

But even if theyre hidden, sign up to get the info or if its an offline biz, try acting like a buyer till you get the necessary info then back out...then do the same (or get a friend to help) from the seller side. Could save you a lot of cash. I much rather you keep your money instead of some scumbag lawyer

 

[LightHouse]

These are the absolute worst type of threads. All you really have to do, is call someone who provides what you are looking for!

No one on an open public forum that knows nothing about you or your business is going to be able to give you an accurate price window. It would probably take less time to call someone and ask, then it took for you to create this thread and wait for replies.

I know I sound like an a**hole but this just seems like you are wasting your valuable time on nonsense.