5 mistakes people make when writing legal documents themselves

Self-drafted legal documents: an expensive risk

Every year thousands of Danes end up in disputes that could have been avoided with a properly drafted legal document. The problem is not the will to protect yourself, but that law has its own logic, and the mistakes you make as a layperson are rarely spotted until it is too late.

Here are the 5 most costly mistakes we see again and again.

Mistake 1: Unclear payment terms and consequences of default

The most common mistake in cooperation agreements and invoice contracts is that clear payment terms are missing, or that nothing is said about what happens if payment fails to arrive.

What goes wrong: You deliver a service, but your customer does not pay. You have no clear agreement on reminder fees, interest on late payment, or when default has occurred. That creates uncertainty and weakens your position if the case ends up in the enforcement court.

What you need to include:

• Payment deadline (typically 8 or 14 days net)
• Interest on late payment (the rate under the Danish Interest Act, or an agreed rate)
• Reminder fee (max DKK 100 per reminder, max 3 reminders, per the Interest Act § 9 b)

Read more about cooperation agreements and payment terms.

Mistake 2: Missing termination terms

Many people write a contract that describes what the parties must do, but forget to describe how to get out of the agreement again.

What goes wrong: A cooperation agreement or consultancy contract without termination terms can in theory run forever, or a dispute arises about when and how it can be terminated. Without clear terms, termination can be read as a breach.

What you need to include:

• Notice period (for example 1 or 3 months)
• Conditions for termination with immediate effect (in case of material breach)
• What happens to work in progress on termination

Mistake 3: Forgotten mandatory elements in the employment contract

The Danish Employment Certificate Act sets precise requirements for what an employment contract must contain. The act was tightened in July 2023, and many employers are not up to date.

What goes wrong: An incomplete employment contract can lead to compensation to the employee of up to 13 weeks' pay (up to 20 weeks' pay in aggravating circumstances), per the Employment Certificate Act § 13. The employer bears the burden of proof that the mandatory information was given.

What you need to include (extract):

• Identity of employer and employee
• Location of the workplace
• Job title and description
• Start date and, if relevant, end date
• Pay, supplements and payment date
• Normal daily/weekly working hours
• Rights to training paid by the employer
• Termination procedures

Mistake 4: No clause on confidentiality and intellectual property

Especially in IT, the creative industries and consultancy, it is critical to regulate who owns the work that is produced, and what is confidential.

What goes wrong: You hire a freelancer to build your website. The contract says nothing about copyright. By default the freelancer owns the copyright to the code, since nothing else has been agreed (per the Danish Copyright Act). You have paid, but you may not own the product.

What you need to include:

• Transfer of intellectual property rights to what is created under the agreement
• Confidentiality clause (NDA) for access to trade secrets
• A clause on what the freelancer may show in their portfolio

Mistake 5: No specification of who is liable for what

In agreements between two companies it is essential to specify who bears responsibility for delays, errors or defects.

What goes wrong: The supplier delivers a product with defects. The agreement is unclear about the right to complain, limitation of liability and the scope of damages. The result is a dispute that must be settled by arbitration or a court, and both parties spend money and time that were not budgeted for.

What you need to include:

• Limitation of liability (for example capped at the total contract value)
• Deadline for complaints
• Force majeure clause
• Insurance requirements for the supplier

How to avoid these mistakes

The most effective way to avoid legal mistakes in your documents is to start with a professional template that is already drafted correctly and updated on an ongoing basis when the law changes.

LegalDock's templates are prepared and verified by legal experts specialising in Danish law. You fill in your own information, and the document is generated with the correct wording.

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