A handshake is great, but all agreements should be in writing.
People enter into agreements every day. Like when you promise to get the milk on your way home from work or when you promise to return that Tupperware after a dinner party. It would not be reasonable to expect someone to draft a contract when the agreement is worth the value of a pinky promise. However, there are some agreements that, if broken, will result in more severe consequences than an evening grocery run. A business owner should put all agreements in writing. Some examples of things you should ensure are in writing include:
- leases or rental agreements
- storage agreements
- land transfers
- contracts for services (such as consulting or electrical work)
- purchase orders or contracts for goods worth more than a couple of hundred dollars
- offer letters of employment
- employment policies
The importance of putting this tip into practice.
Even if it’s not legally required, it’s wise to put almost everything in writing. A written agreement does not have to be formal or complex to get the job done. It can be as simple as an email exchange or a signed napkin. The nature of your transaction will determine the level of detail to consider implementing into a written agreement. The reasons for getting agreements in writing might be:
- Oral agreements can be difficult or impossible to prove
- Protecting your rights and interests
- Clear outlines of who is responsible for what
- Memory is unreliable
- Creates little room for misinterpretation or misunderstanding
- Ensures all parties agree to the same terms
- Some agreements are required to be in writing to be enforceable
- Promotes confidentiality and trust
- Protect promises in the event of unpredictable changes
Get in the habit of getting and giving receipts for all goods, services, and deposits, regardless of how much.
Don’t let yourself become the victim of a handshake with fingers crossed behind the back. It is best to consult an attorney who understands the nature of legally binding agreements. Seeking a document review by a professional attorney? Schedule a confidential consultation with one of our attorneys by clicking here or calling us at 210-368-9708.