Abstract
Micro, small, and medium enterprises (MSMEs) generally conduct transactions with suppliers, buyers, and business partners based on verbal agreements and mutual trust, making them vulnerable to civil disputes when one party fails to fulfill its obligations. This community service program aimed to strengthen contractual legal literacy among MSME owners in Medan Amplas District, Medan City. The program was conducted on July 10, 2026, by three speakers comprising civil law lecturers and legal practitioners, and was attended by 30 MSME owners (11 men and 19 women, all over 40 years of age) who served as sellers, buyers, suppliers, and business owners. The materials covered the legal requirements and principles of contracts, the evidentiary value of verbal and written agreements, essential clauses in business contracts, breach of contract, and dispute resolution mechanisms. The program's effectiveness was measured using a pre-test and post-test consisting of 15 questions. The participants' average scores increased from 36.22 to 96.44, with an average N-gain of 0.94 (high category). The Wilcoxon test indicated a statistically significant improvement (Z = −4.842; p < 0.001). Following the legal counseling session, all participants achieved the good-understanding category, whereas 27 participants had previously been classified in the low-understanding category. These findings demonstrate that contextualized legal counseling on contracts is effective in equipping MSME owners with the knowledge needed to prevent disputes from the initial stage of agreement formation.