In our part 1 series of ‘The Expectations’ we look at the importance of clear and simple contracts. Imagine signing a lease agreement and then realizing later that the contractual agreement does not permit you to use certain amenities within the building. Unfortunately, since the contract is signed, it is assumed that the tenant agrees with the terms even if they claim not to understand some clauses.
A contract is a legally binding agreement outlining the conditions of a relationship or transaction between two or more parties. Therefore, parties are expected to honor the conditions outlined in the agreement.
To meet the expectations of both parties,it is therefore crucial to ensure that the terms in a contract are clear and simple to understand .The following are some of the components to consider when drafting a contract.:
- The contracts are written in a language that is easy to understand; If possible translate the contracts to a language that is understood by the parties.i.e national language
- Use simple terms and not jargon when drafting contracts.
- A contract should be brief and not unnecessarily lengthy; This will encourage the parties to read the whole contract without skipping some parts.
Below are some benefits of a clear contract in an Employer-Employee relationship:
- A clear contract signifies a mutual agreement between the organization and its employees. This therefore forms the basis of the relationship.
- Helps the employers to comply with legal requirements; Compliance with the law is beneficial for both parties since the interests of both parties are considered within the legal framework.
- Contracts enable objective discussions about expectations between the parties involved.
- A clear contract enables Companies to highlight the organization’s values.
- A Contract is a show of commitment by the organization since the obligations are clearly outlined and an authorized officer appends their signature; This can enhance the employer’s brand in the market.
In conclusion, employers need to tailor contracts and ensure they consider the suitable language e.g. If one is engaging employees who are fluent in Swahili, the employer should consider translating the contract to Swahili for the employee to fully comprehend the expectations under the contract.