The reason that most creatives hate contracts is that many contracts are 20 pages long and stuffed with legal jargon.

But did you know that your “formal” written contract doesn’t have to look like that to be valid? That’s what we are covering in this post.

The short answer is that only three things are required to create a valid contract:

• an offer
• acceptance of the exact offer
• exchange of things of value

And contracts can come in many formats other than your traditional long, stuffy contract.

Rather watch?

Psst…rather watch the short version? Then hit play below!

• Watch this video to learn the difference between a contract and a proposal
• Join us in the artist’s Courtyard membership community for $45/month and get access to a “Write your contract” course that includes step-by-step instructions and seven contract templates
• Join us this summer for a six-part workshop series for creative business owners who want clear, enforceable client agreements, without burnout, legalese, or second-guessing. Explore the series.

Why contracts exist

Only a lawyer loves to read contracts that are long and stuffed with legal jargon. (At least this lawyer does!)

And in most cases that is exactly the reason why you don’t want to give your client a contract that’s long and stuffed with legal jargon.

Instead, you should give your client a contract that you actually both will read (and understand).

While many people think contracts exist to make sure you don’t get screwed over, that’s actually not the real reason for contracts.

Instead, a contract exists to make sure that you are on the same page. (By literally getting on the same page.)

A contract makes sure that you have the same understanding about roles, responsibilities, deliverables, and how the project will progress.

It exists so that you don’t unintentionally let the other side down because you had different understandings of what was going to happen.

What’s required to create a valid contract

The truth is that creating a valid contract is quite simple. You only need to:

• say what you will do for them
• have them agree to it
• exchange whatever is outlined

You can write a contract on the back of a napkin. And as long as these three things are present, a court will honor your contract.

And surprise, surprise, legalese isn’t one of those three things listed above.

There’s also a big difference in purpose between a proposal and a contract. Your proposal is usually step one in the process and opens the door to further conversations. 

While your contract is usually step two in the process, once you’ve agreed on what you’ll do for the client. (This video breaks down when you’ll send each and if you can combine them!)

Yes, as a lawyer I use legalese, but I do it for strategic reasons:

• I do it because the legal community has adopted a definition for that legalese word or phrase. And I don’t want to fight about what I was trying to say.
• I do it because my client wants a formal-looking contract.
• I do it because the other party expects the contract to look a certain way.

But just because I understand legalese and write contracts with them, doesn’t mean you need to. (I also take the time to explain the legalese to my clients so they can confidently understand and explain them to their clients.)

As I mentioned, for a valid contract, you only need three things. You need an:

• offer
• acceptance of the exact offer
• exchange of things of value

It seems pretty obvious that for a contract to be formed, all parties have to agree on what’s involved in the deal.

But, sometimes it can get tricky to determine the line between negotiation and a valid contract.

Offer and acceptance

One of the basic rules of contract law is that one party must make an offer and the other party must accept it.

While there are a few exceptions, contracts do not have to be in writing to be valid (although if they aren’t in writing, it boils down to a he-said, she-said situation).

One party must make an offer, and the other party must accept the exact offer.

Can an offer expire?

Offers can have an expiration date.

• You could give a potential client a quote and tell them that it’s valid for 90 days.
• Or you could say that this is your 2025 price for this project.
• Or you could say that registration for a workshop closes 48 hours before the workshop.
• Or you could say that your course is on sale through either July 15, 2025, or until 15 seats are sold.

**Note: If you do this, you might be creating an option contract, which means the offer cannot be withdrawn until the time period ends.

When the offer doesn’t have an expiration date, it remains open for a “reasonable” time.

Can you take back your offer?

As long as an offer hasn’t been accepted, the person who made the offer can withdraw it (or revoke in legalese).

Counteroffers

Counteroffers are what we think of as negotiating a contract.

It happens when you respond to an offer with a slightly modified offer.

And because you are slightly modifying the offer, acceptance happens if the other person agrees to your slightly modified offer.

Counteroffers and what the deal actually is after a series of counteroffers is another area that can lead to confusion and frustration.

Which is why it is critical to document in writing what you’ve agreed to so that you have something to point to if you ever need it.

Exchange of things of value

You might have heard the term consideration; it’s just the legal word for exchanging things of value.

Most of the time, it’s mutual promises to each other to do something in the future.

In a business sense, this exchange is often I’ll give you a product or service in exchange for you giving me money.

However, it’s important to remember there are two important parts to this:

• exchange of things of value
• in the future

Because of that, there is no exchange of things of value when it comes to gifts or things done in the past. So even if you agree on the terms, you won’t have a valid contract.

Some contracts must be in writing

Even if a contract is valid, it might not be enforceable. (Meaning you can’t do anything about it if the other side doesn’t hold up their end of the deal.)

There are six times a contract must be in writing to be valid:

• marriage
• year or more
• land
• executor
• goods of more than $500
• surety

(The law school mnemonic for this is MY LEGS!)

However, only four of these are likely to come up in your business.

Contracts for a year or more

If a contract will last more than a year, then it must be in writing.

So if something will last for 13 months or two years, then it must be in writing to be enforceable.

However, contracts that are for an unknown amount of time don’t have to be in writing to be enforceable. (For example, “We’ll work together until we decide we don’t want to work together anymore.”)

And that’s because they could only last a few months, or they could last several years.

Contracts for land

If you are renting, leasing, or purchasing a studio, warehouse, or other building or property, the contract must be in writing to be enforceable.

Contracts for the sale of goods valued at more than $500

Heads up to all of you with wholesale accounts!

If your wholesale account is buying more than $500 of your products in a sale, it must be in writing to be enforceable.

(However, this is an easy fix! You can just use a wholesale terms checkbox as part of your checkout process and create a valid written contract.)

Contracts where you are promising to pay the debt of another

In legalese, these are called surety contracts.

And you might have encountered them when we were young or when your child turned 18.

These contracts happen when a landlord, bank, or loan company is willing to enter into a contract with you, but only if you have someone who will pay if you can’t. (Or guarantee the contract.)

Where this comes up in business is when you create a brand-new LLC. Because it has the same credit history as an 18-year-old kid, not your credit history.

So a bank, landlord, or credit card company will allow your LLC to do something, but only if you personally guarantee it. And if the LLC can’t pay, you are on the hook to pay from your personal accounts.

Why you want a written contract, no matter what

Even if you aren’t in one of those six situations where it has to be in writing to be enforceable, you still want your contract in writing.

Why?

Because the whole point of having a contract with those you work with is to make sure you are both on the same page. And the easiest way to get on the same page is by literally getting on the same page.

So the next time you embark on a project, I want you to write out in your own words what you:

• plan on doing
• expect them to do
• will be exchanging

Don’t worry about cramming legalese in there.

Don’t worry that you won’t be able to make the other person hold up their end of the deal.

Because as long as you have included those three things, you’ve got a contract. The legalese is optional.

Want help writing your contract? Then I’ve got two resources for you:

• check out this post where I break down 17 sections you might want in your contract (or leave your email below and I’ll send it to your inbox!)
• Join us this summer for a six-part summer workshop series for creative business owners who want clear, enforceable client agreements, without burnout, legalese, or second-guessing. Explore the workshops.

How to sign your contract

You don’t have to mail your clients a paper contract and have them sign it in pen and mail it back to you.

You don’t have to email them a PDF, have them print it, sign it, and scan it back to you.

Instead, you can:

• use a service like HelloSign to have them sign electronically
• use a service like Dubsado or Honeybook that will send a contract as part of your onboarding process
• send them an email explaining your understanding of the deal and asking them to reply with a “Yes!” if they agree
• have an “I agree to terms” checkbox as part of your checkout process

It doesn’t have to be hard! In fact, the easier you make it, the more likely your clients will sign your contract.