By Meng Cheong & Linnea Cederberg
The Hidden Risks of DIY Contract Templates in Business Deals
We get it. You’ve got a business to run, a million things on your plate, and the internet is offering you a shiny new online contract template — cheap or even free! All it takes is a quick download, a few edits, and boom: legal peace of mind… right?
Not quite.
While a “copy and paste” approach might work for a recipe or a gym routine (debatable), it’s a risky move when it comes to legal agreements. Here’s why relying on a cheap contract template or generic online contract can leave your business exposed — and why getting tailored legal advice is worth every cent.
Why One-Size-Fits-All Contract Templates Don’t Work
That free or low-cost contract template promising to “cover all your legal needs”? Think of it like a ‘one-size-fits-all’ poncho: it kind of works, until it rains sideways and you’re drenched.
Every business is different. An online contract template that doesn’t reflect your unique terms — like payment triggers, exit rights, or indemnity protections — can leave you wide open when something goes wrong. And that’s usually when you’ll really need it to hold up.
Cheap Contract Templates Are Often Not Australian Law Compliant
Many online contract templates are drafted for other countries, using overseas laws or outdated legislation. That might fly in Florida, but not in Footscray.
Using a UK contract template or US legal document in Australia can breach local consumer laws, competition rules, or corporate regulations — or even render your contract unenforceable.
We’ve had clients tell us they used a UK contract template because “Australia follows the same common law.” While our legal system shares roots, our consumer protections, unfair contract terms laws and business structures are uniquely Australian. Relying on a foreign contract is like driving on the left in New York because it works in Sydney — a recipe for disaster.
Franken-Contracts: When You Mix Multiple Contract Templates
Mixing and matching from different free contract templates is like building a bike with parts from three different IKEA furniture sets — it wobbles, creaks, and eventually collapses.
We call this Frankenstein Contracts or Franken-contracts.
We’ve seen plenty of these “Franken-contracts” with contradictory clauses, missing essentials, or language so vague even lawyers struggle to decipher the intention. These inconsistencies breed disputes — and disputes breed litigation.
Online Contract Templates with the Wrong Dispute Resolution Clauses
Some online contracts include dispute resolution clauses naming far-off jurisdictions like Delaware or New York. Others forget dispute clauses altogether. That’s fine — until there’s a disagreement and suddenly you’re trying to resolve a business dispute using laws from another country.
We’ve had to help businesses untangle themselves from contract templates that locked them into irrelevant laws, or offered no process to resolve a problem. By the time they call us, they’re already knee-deep in legal costs.
The Illusion of Safety: When Contract Templates Look More Legit Than They Are
A cheap contract template might look the part — headings, clauses, and even the word “Limitation of Liability.” But that doesn’t mean it actually protects you.
Think of it as a discount parachute. It might look fine on the ground, but you don’t want to test it mid-air.
Why Using an Online Contract Template Can Cost You More in the Long Run
Here’s the truth: The cost of legal advice is likely to be much less than the cost of an uninformed decision.
What seems like a saving now — downloading a free online contract template or skipping a lawyer’s review — can quickly become an expensive problem. We often see clients come to us after they’ve signed something generated from an online contract generator or AI tools like ChatGPT. They didn’t get legal advice at the time because it looked fine — until it wasn’t.
Now they want out of the deal, but discover they’ve overlooked key issues that only a lawyer would have asked about in a proper client consultation. Drafting a contract isn’t just about words on a page — it’s about understanding context, identifying risks, and applying judgement. That’s where legal training matters, and ChatGPT can’t replace that.
Why Getting Tailored Legal Advice Beats Any Online Contract Template
A good commercial lawyer doesn’t just fill in blanks. We:
- Make sure your contract reflects your specific deal
- Ensure compliance with Australian laws and regulations
- Allocate risk fairly between parties
- Ask the right questions to catch what a contract template never could
A contract should protect your business — not blow up in your face the moment something goes wrong. Think of tailored legal advice as an investment in peace of mind. Often, it’s the difference between a successful deal and an expensive legal mess.
In short: Don’t let a cheap online contract template become a costly mistake. Get proper legal advice. Your business (and your future self) will thank you.
Need help reviewing a contract template or drafting one that actually suits your business?
We’re here to help — whether it’s to sense-check something you’ve found online or to prepare a contract from scratch that reflects your deal, complies with the law, and protects your interests. Just get in touch with us today.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.