Breaking Down Contract Templates
Before I say a single word on contract templates, I want to preface this by saying: what you will read below applies only to contract templates drafted by licensed attorneys in these here United States. I am not referring to templates sold by non-lawyers or randoms on Craigslist. Those kinds of templates should never, ever be used. I’m serious!
With that out of the way - let’s talk templates! Here’s what I want to cover:
For starters, why do attorneys sell these templates?
How do you know if you have a “good” template?
When shouldn’t you use a template?
Let’s do it!
WHY DO ATTORNEYS SELL TEMPLATES?
I can only speak for myself but I chose to sell contract templates for two reasons. First, I wanted to expand my reach. As an attorney, I am limited to assisting clients that reside in the state where I am licensed, New York. Because templates are sold “as-is” - meaning no legal advice is given through the sale and no custom language is added - a template is not considered within the realm of the “practice of law.” This allows me to ethically offer them to non-NY entities and individuals.
Second, I wanted to make effective, well-drafted legal documents more accessible. In general, a custom contract drafted by an attorney will be tailored to your business but much more expensive than a contract template. Which makes total sense. But not everyone is able to afford a custom contract. Many of my clients are small business owners who have to ensure their funds go as far as possible. I’m a huge advocate of paying for expertise, however, you shouldn’t have to cut a [legal] corner because you can’t afford a custom contract. That’s why a contract template drafted by an attorney is a great solution.
WHAT’S A “GOOD” TEMPLATE?
Assuming you purchased a template from an attorney, I’m sorry to be the bearer of bad news but that does not mean you’re in the clear. I’ve seen templates drafted by attorneys that included misspelled words, inconsistent language, and just plain wrong legal information. As a nonlawyer, how can you tell if a template is “good” or not?
Start with analyzing the overall look and feel of the document. Is the numbering right? Same font throughout? Run a quick spell check! Most importantly, make sure the document addresses all of the sections that were promised in the description before you purchased. Typical sections in all agreements include the scope of services, payment terms, termination rights, and confidentiality, to name a few. You may not be able to spot the legal misinformation but you will definitely be able to tell if the agreement was drafted sloppily or with care.
Now, I realize that once you’ve purchased the template it may be too late to care about whether it’s a “good” one or not. But that’s not necessarily true! If you see a lot of mistakes or if the document is missing language you were told would be included, reach out to the attorney. Let them know of the issues and they may offer you a refund. You don’t ask, you don’t get, friends!
WHEN YOU SHOULDN’T USE A TEMPLATE.
There are times, of course, when a template would not make sense for your situation. If you have a very unique business relationship or arrangement that doesn’t quite fit any of the agreements that are being sold, you likely need a custom contract. It does not make sense to purchase a template that you have to substantially change. For starters, as a nonlawyer, any changes you make can severely impact the legal consequences that arise out of that agreement. Trust me, one word in a contract can change the entire meaning of a sentence. Or, you could be missing crucial language needed for your unique situation. For example, if you needed to an independent contractor agreement but the template shop you were interested in did not have one, you shouldn’t settle for their general Services Agreement. Independent contractor agreements should include a bunch of specific “contractor” language that would not typically be found in a general Services Agreement. The risks and potentially negative legal implications of signing an agreement with missing language would not be worth the money you saved by choosing a template over a custom contract.
All in all, contract templates are a great solution to the issues of legal access in the creative space. If it makes sense for your particular situation (and when drafted by a competent and experienced attorney), they can provide effective, legal documents for purchasers.
Any information provided in this article is intended for general informational purposes and is not intended to be, and shall not be relied upon, as legal advice. © 2021 Pamela Rosario, LLC