Your word may be enough to serve as your bond in many situations, but written contracts keep everyone honest, informed, and in line. They clearly spell out the terms of an agreement and ensure that each party knows what they’re expected to give and receive in order to satisfy the contract. A written contract is especially essential when you are part of a transaction involving the exchange of more than $500. It provides a clear definition of terms, a predetermined path for enforcing those terms, and helps avoid confusion between parties.
While there are many situations where a verbal promise can suffice, a written contract is often easier to enforce in the courts. A written contract also has the following benefits:
- clearly outlines payment terms
- offers indisputable proof of the initial agreement
- makes provisions for breaking the contract
- avoids confusion and misinterpretation of terms
- provides both parties with clear guidelines and peace of mind
- defines collateral and the process for retaining that collateral in the event of a contractual default
Even when drawing up a contract means delaying the start of a business or project, there are many situations when an agreement simply should not be made without having a written contract in place. When a significant amount of money is changing hands, a written contract is an absolute must-have. When quality control, code enforcement, or other critical specifications must be met, they can be detailed in a contract. When certain bonds, licenses, or types of insurance are required, a contract guarantees these protective measures are in place. A business or personal loan requiring regular payments and the collection of interest until the loan is paid back in full definitely require a written agreement.
When you’re making arrangements for the sale, lease, or other exchange of goods, labor, or money, you’ll appreciate the unshakable protection of a written contract. We can help. The skilled, experienced attorneys at the Robinson Law Firm can provide you with the protection of a contract and the certainty that your needs are met.