A contract agreement must contain the signatures of the parties involved in the contract, as well as clearly stated language that is valid in a court of law in order to settle disputes. Contracts for services rendered require signatures, fees and locations, among other details, in order to be valid.
Contracts are agreements between two parties to do or to not do something specified in the document. For example, a simple contract using wording such as: John Doe agrees to the following items specified in this document, or, this agreement is based on the following provisions. This way, all parties know the conditions that created the contract, and what items they are each responsible for. The clearer the wording, the more useful the document is in a court of law, where it would be needed in case of a conflict between the involved parties.
All parties benefit when they consider how the clauses within the contract affect them. Some wording in a contract may be unreasonable for one or more parties, resulting in conflicts if they are not addressed before the contract is signed. If the wording is clear but biased significantly to one party, then the other participants in the contract lose out if they sign the document without reviewing the conditions first. For example, a writer may receive a contract from a shady publisher that states that all work the writer does is legally owned by the publisher and the writer receives no money for the work they do, creating unreasonable conditions for the writer that are difficult to get out of legally if the contract is well-written.