Introduction

Contracts are essential, but when it comes to drafting them, not everyone has the time, budget or expertise to start from scratch. That’s where standard contract templates come in. They’re like the fast food of the legal world—quick, convenient and ready to go. But just like with fast food, there are pros and cons to using them. Let’s break down what’s great—and not so great—about relying on standard contract templates for your business agreements.

Read: Why you should always have a contract when doing business

The pros

Time-saving convenience

One of the biggest advantages of standard contract templates is how much time they save. Instead of spending hours (or even days) drafting a contract from scratch, you can grab a template, fill in the blanks, and you’re done. This is especially handy when you’re dealing with routine agreements that don’t require a lot of customization. Time saved means you can focus on running your business instead of getting bogged down in legal details.

Cost-effective

Hiring a lawyer to draft a custom contract can be expensive (billable hour, anyone?). Standard templates, on the other hand, are often free or low-cost, making them a budget-friendly option for small businesses. They give you a way to protect your interests without breaking the bank. For startups or small companies watching their expenses, this can be a major plus.

Easier to understand

Standard templates are usually written in plain language, making them easier to understand than contracts drafted by lawyers with complicated legal language. This accessibility means you can quickly get a grasp on what the contract says and make informed decisions without needing a law degree.

Consistency across agreements

Using the same template for similar agreements ensures consistency across your contracts. This uniformity can be helpful in maintaining standard practices within your business and makes it easier to manage multiple contracts. Plus, it reduces the chances of forgetting key clauses that should be included.

Read: When should I hire a lawyer for my contract?

The cons

One-size-fits-all doesn’t always fit (ironically)

The biggest downside to standard contract templates is that they’re generic by nature. They’re designed to be broadly applicable, which means they might not cover the specific needs of your business or the unique details of your agreement. If your deal has any complexities or special requirements, a standard template might leave you exposed to risks or overlook important details.

Lack of customisation

Templates can be limiting when it comes to customization. If you need to make significant changes to fit your specific situation, the template might not be flexible enough. This can lead to awkward clauses or missed opportunities to address particular issues. What works in one scenario might not work in another, and forcing a template to fit can sometimes cause more problems than it solves.

Legal risks

While templates are easier to understand, they can also create a false sense of security. Just because a template looks official doesn’t mean it’s legally airtight. Important clauses might be missing, or the template might not comply with the specific laws in your jurisdiction. This can leave you vulnerable to disputes or legal challenges down the road.

Overconfidence in templates

Relying too heavily on standard templates can lead to overconfidence. You might start thinking that because you’ve got a template, you don’t need any legal advice. But even the best template can’t replace the expertise of a lawyer who understands your business and can tailor the contract to your specific needs. Skipping this step could cost you more in the long run if something goes wrong.

Read: How to update your contracts to increase profits

Conclusion

Standard contract templates can be a great tool for businesses, offering convenience, cost savings and simplicity. They’re perfect for routine agreements and situations where you need to move quickly.

However, they’re not a one-size-fits-all solution. If your contract involves complex terms, significant financial stakes or specific legal requirements, it’s worth investing in professional legal advice. Templates are a good starting point, but they’re not a substitute for a well-drafted, customized agreement that truly protects your business.

In short, use templates wisely—know their limits, and don’t hesitate to call in the pros when you need them. Your business is worth it.

How Cobrief can help with contract review

Reading your business contracts can feel overwhelming as an owner-manager of a small to medium-sized business. That’s where Cobrief comes in. Cobrief helps business owners and operators review their business-to-business contracts for legal risks.

Upload your contract to Cobrief's AI contract review software, click review and you’ll get a list of all the risks, in plain English. This helps you decide whether to sign, negotiate or reject the terms of your contract, or hire a lawyer. Think of it as a heat map for your contracts.

Get started here.