Is a Simple Contract Simple To Make?

Standardized Legal Documents Is a Simple Contract Simple To Make?

The Complexity of a Simple Contract

When entering any venture with another party, you should create a contract. This legal document must state the rights and responsibilities of all parties to prevent potential problems and misunderstandings and to make the deal safe and clear.

A simple contract is a widely-used agreement. The question is how simple it is. We’ll deconstruct this document and teach you how to make it even if you are not a lawyer. 

What Is a Simple Contract?

A simple contract is a verbal or written agreement between two parties. To make it valid, the parties must:

  1. Agree to sign a legally binding agreement
  2. Do or promise to do something in exchange for the promise or act of another party
  3. Be 18 or over

It is always advisable to make a written simple contract since verbal agreements are difficult to prove in court if a dispute arises.

You should include the following details in any simple contract:

  1. The names and addresses of both parties
  2. Terms and conditions 
  3. Penalties in case one party breaches the contract
  4. Termination policy
  5. A clause stating the parties have read the contract and approved it
  6. Signatures of both parties

When Is a Contract Legally Binding?

Six elements make a contract legally binding:

  1. Offer
  2. Acceptance
  3. Mutual assent
  4. Consideration
  5. Capacity
  6. Legality


An offer is a promise one party makes to pay for the services of another. You may give the deposit in advance and pay the rest of the money upon delivery of the service. Offers can include other terms and conditions, such as the copyright.


Acceptance is a party’s agreement to do the task for specific compensation. The party can request a written agreement to ensure he/she will receive the money for the service.

Mutual Assent

This is the combination of a valid offer and acceptance between the parties. The best way to prove mutual assent is a signed contract. If the parties agree verbally, they can demonstrate mutual assent by some other actions, such as giving the deposit.


Consideration is the value a party gives to another in exchange for a service or product. Most frequently, it is money. Both parties must agree on the price and clearly state it in the agreement.


Capacity is the ability of a person to understand the terms, obligations, and consequences of signing a contract. You must be 18 or over to have the capacity to sign a contract. People suffering from dementia or under the influence of drugs and alcohol don’t meet the capacity demand. If the contract is written in a language you can’t read, you will lack capacity. In this case, a translated copy is the solution.


Legality refers to adhering to the law in the jurisdiction where the parties sign the contract. Each state has its laws, so make sure you understand them before accepting the agreement. 

Terminating a Simple Contract

A simple contract should have a cancellation policy. It enables a person to terminate the contract for a valid reason. If there is no cancellation policy, you can terminate the contract if any of the following apply:

  1. The agreement favors one party over the other—For example, if the party providing the service suddenly increases the price
  2. The other party breaches the contract
  3. The contract is fraudulent—A party may deliberately misrepresent certain facts

Both parties can always agree to cancel the agreement. 

A Simple Contract Versus Deed

There are two types of contracts the law enforces:

  • A contract under seal (a formal contract or a deed)
  • A simple contract

A contract under seal is written on a piece of paper or parchment, and it is signed, sealed, and delivered.

A deed must comply with the formal requirements of a statute (a written law a legislative body made). 

A simple contract is any contract that is not under seal. It can be:

  • Completely verbal
  • Completely written
  • Partly written and partly verbal

As opposed to simple contracts, deeds must be in a written form.

The table below summarizes the key differences between these two legal documents.

Simple ContractsDeeds
  • Are written or verbal
  • Use consideration
  • Don’t require additional formalities, such as a witness upon signing 
  • Have the six-year statutory limitation, allowing you to make a claim for the breach of contract within six years after it happened
  • Are written
  • Don’t use consideration
  • Require additional formalities like witnesses
  • Have the twelve-year statutory limitation

Use DoNotPay To Create Numerous Legal Documents

can draw up various legal documents in the blink of an eye! If you need a contract and don’t want to hire a lawyer, follow the steps below and draft your legal document in no time:

  1. Open DoNotPay in your
  2. Type in the name of the contract you want
  3. Give the necessary information to our chatbot

That’s it! We’ll generate a tailored contract in a minute following the information you gave us. Sign or notarize the contract to make it official. 

The list below contains customizable contract templates we offer at the moment:

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