Why You Need to be Clear About The Subject Matter When Drafting Contracts

One of the most basic parts of a contract is describing its subject matter.   The subject matter is the part of the contract where you, the client, has the most imput. Generally, the subject describes the services that are to be perfomed, the goods that need to be sold, the property that needs to be assigned. 

When describing the subject matter of your contract be aware of the following:

  • What are the basic facts of the contract?  A well-drafted contract requires an awareness that words have implications.  For example, during negotiations you may have agreed to purchased gold.  When you receive the contract, the seller may have changed the subject to metals.  This would have serious implications if the seller ships you silver instead of gold.
  • What do common terms really mean?  A common term may change its meaning over time, so it is best to define it in the subject section of the contract.

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