A business contract is a very important document as it states the terms and conditions of the very business transaction including delivery of services and product sales. This helps the involved parties to avoid misunderstandings that arise in absence of a written agreement. If you plan to collaborate with your friend on a new business, then having a business contract is extremely important.
By having a business contract, you can avoid all misunderstandings and thereby save yourself from the rifts that can end your personal and professional associations. Having an oral contract may make you forget some important points that you had earlier agreed on. Thus when you have a written agreement, you will have all the terms and conditions clearly in front of you. You can also alter the agreement anytime you want, with the approval of both parties.
Written business contracts can be effectively enforced:
When it comes to creating contracts, often people are unrealistic. Relationships should never be taken at their face value. Disagreements can crop up anytime, especially between family members and friends. When you get into a verbal contract, you may choose to ignore things that seem to be quite obvious. This might prove dangerous later on. Thus it’s best to have a written agreement before commencing with any business.
When you have a written contract, you and all the involved parties are careful enough to incorporate each and every single detail. Implementing written contracts are much easier compared to verbal contracts.
Usually, a written contract comprises of an acceptance and offer. Sometimes, it also includes counteroffer. However, the offer comprises of a statement which states that a business or person is ready to enter into an agreement on some definite terms and conditions.