Protect Your Business – Why to Put Agreements in Writing
In the world of business agreements, assume ink beats speech any day. In this blog post, we’ll explore three of the key reasons why having written business agreements is important for protecting your business, rather than relying on oral understandings.
The Uncertainty of Verbal Agreements
Written agreements provide a level of certainty that verbal agreements simply cannot.
Even the most honest individuals may have different recollections of an oral agreement. As a result, misunderstandings and disputes can easily arise.
Memories are subjective and tricky, leading to potential discrepancies and costly disputes. Written contracts act as a safeguard against uncertainty, putting both parties on the same page and reducing the chances of future disputes.
Resolving Misinterpretations with Written Agreements
Even when parties believe they remember the details of an oral agreement, there is often room for misinterpretation. Putting an agreement in writing not only frequently highlights potential discrepancies but also helps facilitate a true meeting of the minds between the parties involved.
Avoid misunderstandings, disagreements, and unnecessary expenses by documenting your business agreements in written contracts. By doing so, you help the parties involved share a common understanding of the terms and obligations, reducing the chances of disputes that could harm your business.
Preventing Unexpected Twists
Business relationships can be unpredictable. People change their minds, and sometimes, this can lead to attempts to unilaterally alter the terms of an agreement.
While such actions may not be right, shifts in moods and changing circumstances can introduce unexpected twists in your business dealings. By documenting your agreements, you reduce the chances of sudden twists in your business dealings because of moods.
Conclusion
Written business agreements and contracts are not just pieces of paper. They are important to reduce risk to your business from uncertainty, misunderstandings, and unexpected changes.
Reach out to our firm for help with your business law matters and contracts. Click here to contact Guala Law Firm if you need legal advice or assistance.
