To customize a business contract template, complete it with the information required to make the contract legally valid. Most contracts are valid if they include the names of the contracted parties and clearly define the cash, goods or services the parties are exchanging under the contract, according to Nolo.com.
You can find free templates online at sites such as Bloomberg.com for contracts in business categories ranging from real estate to licensing, business operation and human resources. The first step in customizing a template is to review available options to find a template with standard text that best fits your situation. A binding contract can be expressed briefly and in simple, everyday language, says Nolo.com, as long as the contract includes key details such as the legal names of the parties and a description of each party's rights and obligations under the contract.
For an agreement to have the legal status of a contract, it must have the basic elements of mutual assent, consideration, capacity and legality, says the Legal Information Institute. The parties must agree willingly and responsibly to an exchange of goods, services or cash that is permissible under law. Consideration is the element that distinguishes a contract from a promise to bestow a gift, which is an agreement that is not enforceable under law.