Top 10 Mistakes People Make When Drafting Agreements Without a Lawyer

When I first tried writing a business agreement myself, I genuinely thought I could handle it with a few online templates and some common sense. But soon after, I ended up in a heated dispute with a client over a missed payment clause I completely overlooked. If you’ve ever sat in front of your computer, trying to craft a contract and wondering, “What if I miss something important?”, then you’re not alone.

Many people feel unsure when drafting legal agreements on their own. The pressure is real—one wrong sentence could lead to months of disputes or even lawsuits. Whether it’s a freelance contract, a partnership deal, or a supplier agreement, these documents are more than just paperwork. They're about protecting your rights, money, and peace of mind.

While it's tempting to skip professional help to save costs, working with an agreement lawyer often prevents expensive consequences down the line. A legal expert doesn’t just write in legal jargon—they help make sure your agreement is enforceable, balanced, and protective. Here’s where I found the support I needed.

Why Do People Choose to Draft Contracts Themselves?

Before we get into the specific errors, it's important to look at why so many people take the DIY route:

• They think it will save money upfront.
• There’s a belief that simple agreements don’t require legal input.
• Many trust free online templates or examples from friends.
• Some underestimate the risks of a poorly worded contract.

But saving a few hundred pounds now can cost thousands later in disputes, legal proceedings, or failed deals.

1. Using Generic Templates That Don’t Match Your Situation

One of the biggest traps I fell into was copying a template from the internet and tweaking it slightly. It felt convenient, but it didn’t reflect the specifics of my arrangement at all.

Why It’s Risky:

• Templates often don’t match UK legal standards or the laws specific to your jurisdiction.
• They may lack clauses that apply to your industry, services, or financial terms.
• Some even use outdated language or missing data protection requirements (especially post-GDPR).

Tip: Instead of relying on generic formats, agreements should be tailored based on context: service type, location, involved parties, liabilities, and sector norms.

2. Leaving Out Key Definitions and Interpretations

When I wrote my first consulting agreement, I didn’t define what “project completion” meant. That mistake led to two different interpretations—and a frustrated client.

Definitions Matter Because:

• Ambiguous language leads to confusion and disputes.
• Terms like “reasonable time”, “best efforts”, or “completion” can be interpreted differently in court.
• Legal definitions often differ from common use.

Example: If you're selling services, define what counts as “delivery”, “revision”, or “acceptance criteria”.

3. Not Addressing What Happens When Things Go Wrong

People tend to focus on the success of a deal but forget what happens if it goes sideways. This is where many DIY agreements fall apart.

Common Omissions:

• Dispute resolution mechanisms (mediation, arbitration, or litigation).
• Termination rights: who can end the agreement and under what circumstances.
• Penalties for non-performance or breach.

Stat Fact: According to the Federation of Small Businesses, nearly 40% of UK SMEs face disputes annually—often linked to vague or missing contract terms.

4. Ignoring Jurisdiction and Governing Law

This one is often buried at the bottom of contracts, but it’s one of the most important.

Why It Matters:

• If your contract doesn’t specify the legal jurisdiction, you might face legal action in a foreign court.
• Governing law clauses ensure that disputes are handled under familiar, local laws (e.g. English law).

Real-life example: A London-based freelancer contracted with a client in the US. The agreement had no jurisdiction clause, and when payment issues arose, the freelancer was expected to resolve the issue under New York law—costing time and a hefty legal bill.

5. Forgetting to Include Payment Terms Clearly

Vague payment terms are a recipe for late payments, cash flow issues, and confusion.

Your Agreement Should Include:

• The exact amount and currency.
• Due dates and invoicing frequency.
• Late payment penalties.
• Payment methods (bank transfer, PayPal, etc.).

Related terms: financial obligations, invoicing schedule, late fees, net payment terms.

6. Not Including Confidentiality and Data Protection Clauses

In today’s data-driven economy, not protecting sensitive information can land you in legal hot water.

Important Elements:

• Non-disclosure clauses for sensitive information.
• Data handling procedures aligned with the UK GDPR.
• Clear responsibilities for both parties regarding data leaks or breaches.

Fact: The ICO issued over £40 million in GDPR-related fines in 2023 alone. Don’t be the next one on the list due to missing contract terms.

7. Overlooking Intellectual Property Ownership

Whether it's a logo, document, website, or design—someone owns that intellectual property. And if you don’t spell it out, disputes can arise fast.

What You Must Clarify:

• Who owns the work once it's delivered?
• Does the client get full ownership or a licence?
• Can the work be reused elsewhere?

Example: A graphic designer created branding for a client but didn’t include an IP clause. The client later tried to resell the artwork. Without proper ownership terms, the designer had no legal standing.

8. Missing Out On Signatures and Execution Clauses

An unsigned contract can sometimes be unenforceable. But it's not just about signatures—it’s about how they're documented.

What to Include:

• Date of signing.
• Witnesses (where required).
• Digital vs handwritten signatures.
• Signing blocks for each party with name and title.

UK Specific Note: Under the Electronic Communications Act 2000, digital signatures are valid—but only if properly structured.

9. Not Updating or Reviewing Agreements Over Time

Businesses grow, laws change, and what worked last year may not be suitable now.

Risks of Outdated Contracts:

• Breach of new regulations (e.g., IR35, consumer protection).
• Misaligned terms due to changes in pricing, services, or scope.
• Missed renewal clauses leading to accidental auto-renewals.

Tip: Set a reminder every 6–12 months to review your agreements, especially for ongoing partnerships or retainer clients.

10. Failing to Get Legal Advice When It’s Clearly Needed

Sometimes, we just don’t want to ask for help—even when we know we should.

Signs You Need Legal Guidance:

• The agreement involves significant money or long-term commitments.
• There are complex clauses (e.g., indemnity, limitation of liability).
• You're unsure how to enforce it if something goes wrong.

Trust me—when it comes to legal contracts, uncertainty can cost you more than a consultation fee.

A Quick Comparison: DIY Contracts vs Legally Reviewed Agreements

Conclusion

Writing your own agreement can feel like a shortcut but often it’s the long road to problems. I’ve made these mistakes myself, and I've seen others suffer from contracts that looked solid on paper but fell apart in practice.

You don’t need to be a legal expert, but you do need to respect the power of well-drafted contracts. With the right help and a focus on clarity, fairness, and legal grounding, your agreements can protect your work, your time, and your peace of mind.

If there's one thing I’ve learned, it’s this: cutting corners on legal agreements is never worth the risk.