Free legal templates: 5 ways they can land you in hot water
Free legal templates are appealing when you need to protect your business, your IP and yourself and when you can’t afford to pay thousands of dollars for a lawyer to draft you a bespoke solution. It’s completely understandable and we have all been there.
When I first started my business, to cut costs I designed my own logo using free software. While it didn’t cost me anything, the result was as you would expect. I am a lawyer, not a designer. The logo I had designed reflected poorly on my business and would certainly have led people to question the quality of my digital products and services. In fact the business didn’t take off until I got a professional involved.
The links below will take you to templates created with your specific industry in mind:
What I hadn’t factored into my ‘free’ logo solution was the true cost, and this wasn’t even a legal document that could cause me significant risk, though it did make my brand look shabby!
If you decide to use free legal templates, I want you to be able to make the decision with confidence and as part of that decision there are significant risks to be aware of. Read the top five reasons below and then you will be informed and make that choice, aware of the potential impacts of those risks and then make a decision that you feel good about.
1. Free legal templates aren’t location accurate
If you are based in Australia, any template you use needs to be relevant to Australian law. Even if you have contractors based internationally or if your clients are overseas, your legal documents need to reflect Australian laws.
Any disputes over issues covered in your contract or agreement are more likely to be resolved if the document is fit for purpose and aligned with Australian laws (though of course that will depend on the nature of the dispute). If, however, they are created elsewhere in the world, then you may find yourself in hot water if a problem arises.
Having an Australian Lawyer’s expertise, whether they are providing customised solutions or template solutions is essential if you want your document to hold up when challenged.
2. Free legal templates aren’t specific enough
Every industry has its own unique ways of working and issues specific to that industry. Each industry, task and role has its own nuances and free legal templates are rarely specific enough to incorporate the requirements and anticipate specific risks.
As an example, we have a digital agency agreement template that includes industry specific risks. Some of these include clauses to prevent endless back and forth between client and designer. The template allows you to stipulate who will own the copyright of any designs or content. It also outlines other task limitations and inclusions or exclusions relating to other related tasks such as video, website building and more.
High quality templates make it easier for you to prevent loss of time and money and even loss of reputation. By covering conditions specific to your industry, the product, service or role (depending on what type of template you need) you are less likely to omit important elements from an editable template and keep everyone on the same page. A specific template will assist with managing expectations about payment, operations, timeframes, copyright and more.
Do any of these points below sound like you?
You own an online business
You own a small business
You employ anyone
You engage contractors
Have a podcast
Have online programs or memberships
Use social media in your business
Run a Facebook page
You’re a lawyer
You’re a life or business coach
You’re an NDIS provider or hire NDIS support workers
If any of the above points relate to you, you will need a specific legal template over a generic one.
3. Free legal templates can be hard to read & understand
Many lawyers have a tendency to use latin and legal jargon in their agreements. The same is true for free templates which are sometimes copied by people without legal qualifications and uploaded to the interwebs willy nilly.
At my first job, one of the senior partners at the firm used to use phrases in his letters like “I refer to your correspondence of 5th ultimo.” What he meant was “I’m referencing the letter you sent on the 5th of last month.” You may not be surprised to learn that this language is still used in plenty of legal documents, free, paid and custom drafting, simply because they haven’t been modernised into easy to understand language like we’ve done with our templates.
Legal jargon keeps people in the dark, something you certainly don’t want your legal templates to do. If someone doesn’t understand a contract or agreement, they are less likely to sign it or agree to something they don’t understand. This is why people find themselves having to explain things over again and can also result in having to manage a legal dispute.
Whatever option you decide upon, ensure that it is easy to understand. For you and for the other party.
4. Free legal templates aren’t always credible
Do you know who created that free template you have downloaded? As we have discussed, templates created overseas are not enforceable for you as an Australian business. If you are considering using a free legal template, can you be certain an expert in Australian law created your legal template and that it is up to date?
You know what else isn’t credible? Turning to AI like Chat GPT to create legal documents, for example. Chat GPT is surging in popularity as a tool that saves people time and money. If you’re hopeful that a document put together by AI will do the trick (because it is incredibly professional looking and is very convincing, at first glance), be wary.
Chat GPT and other AI technologies are unreliable and inaccurate when it comes to legal drafting. I have tested it myself with my drafted agreement alongside a Chat GPT drafted agreement. Without legal qualifications you might think it looks good, but 6 years of law school and over 2 decades in legal practice tell me otherwise. AI draws on sources globally and has been known to make false content, obviously a significant issue when it comes to legal documentation. If lawyers using AI who have the expertise are getting caught out which was the case recently in the US, you might be in for a rough ride if you go down that route.
While it is not essential to engage a lawyer to draft your legal documents and we know there are budgetary consideration, the whole point of getting legal documents is to make clear the terms of what you are doing so you don’t have to deal with preventable issues later on.
So, when you choose the template you are going to use, know where it was created and who it was written by. Our legal templates are created here in Australia by myself, a lawyer with many years experience. And, if you want more protection, then engage an experienced lawyer to draft a customised one for you.
5. Free legal templates can ultimately cost more
A free legal template is truly only free at the point of ‘sale’.
Free legal templates are great, until there is a dispute and you are in trouble. Then they are less than great.
The real costs are in the time you will use to manage the dispute, paperwork and administration and the financial costs. Not to mention the stress of it all. When your free template doesn’t stand up, it can even contribute to losing clients, employees and have a significant impact on your small business’ reputation.
While none of us can predict the future and disputes still happen, having a well drafted document is a better form of protection for you than any free template.
So, where to from here?
The ideal solution to any of your legal needs is always to have a lawyer drafted, customised document. The reality though, is that this cost is unachievable for many small business owners.
If your needs are complex and highly niche, then it would be worth engaging a lawyer who, while expensive in the first place, will save you money later down the line. A free template may seem like a good solution but remember it is likely you will end up paying later down the line.
Our legal templates fit ‘in between’ these two options. Our templates are created here in Australia for Australian laws. We have spent many years working closely with clients across many different industries, business cases and employment conditions, and we’ve added the nuances and specifics into our customisable templates.
Written by Australian lawyers, they are affordable and start from just $30. If you don’t want to take the risks presented by a free template but can’t afford to pay for a customised solution, then our customisable templates, that are easy to read and understand, are a good middle ground and a more affordable option.
Related: Templates for anyone who owns a website
Templates for professional services
Templates for online courses and memberships
Templates for online business (podcasts, social media, events etc)
Take a look at our Ready to Boss Legal Shop by visiting http://www.readytobosslegal.com/shop.
In reading this article from Ready to Boss Legal (Article), you have not asked us to provide legal advice to you and this Article should not be used in substitution for legal advice. This Article contains information only and Ready to Boss Legal is not acting as your lawyer in providing this Article or other information to you. You do not have a solicitor/client relationship with Ready to Boss Legal unless you choose to formally engage us in writing for customised legal services (excluding template purchase which is also legal information).