A contract is a binding, legally enforceable agreement between two or more parties.  It is imperative, therefore, that in drafting a contract, care is taken to understand and clearly set out the agreement between the parties, as well as any proposed remedies in the event of breach, termination, discord, or unanticipated occurrences. 

The complexity or simplicity of a contract is dependent upon such factors as identity of the parties, subject matter, duration, consideration, financial expenditure, risks of liability or loss, and importance of the contract to the parties.  In some situations, a handshake is sufficient; in some situations, no document will prevent litigation. 

It is important to keep in mind in contract drafting that the written document is the final statement of the agreement between the parties.  Prior agreements or writings are not presumed to be part of the final contract document unless specifically incorporated.  The final contract, therefore, should clearly state or make reference to information, data, standards, documents, or any other exhibits which clarify the intent of the parties.