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 8pm 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 hundred dollars
· offer letters of employment
· employment policies
The importance of putting this tip into practice.
Even if 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. Reasons to get agreements in writing might be:
· Oral agreements can be difficult or impossible to prove
· Protects your rights and interests
· Clearly outlines who is responsible for what
· Memory is unreliable
· Creates little room for misinterpretation or misunderstanding
· Ensures all parties are agreeing to the same terms
· Some agreements are required to be in writing to be enforceable
· Promotes confidentiality and trust
· Protects promises in the event of unpredictable changes
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? Call us now, 210-368-9708, to request a consultation.