Insight
I recently led an online event on the importance of contracts for business of all shapes and sizes. Sometimes, as a commercial lawyer, it can be easy to forget that not everyone loves the minutiae of a contract like you do and are often keen to just agree and get on with it!
The problem is that, well, as soon as there’s a problem that approach falls down. There is also a common misconception that a contract does not exist where there is no written document in place between the parties, however that is definitely not always the case.
Contracts play a pivotal role in day-to-day operation and success and in most circumstances we would always recommend that parties enter into a written contract governing the relationship and the relevant obligations for the period of the contract (and beyond as the case may be). The primary reason for this is that a written contract will remove any ambiguity that may exist in the course of negotiations and makes it easier to prove what the contractual terms are. From a very basic perspective, a written contract will clearly identify the parties involved and will allow the parties to set out several important provisions, including recording explicit terms on what will happen in certain situations (for instance where there is non-delivery/performance of goods and/or services).
Check out the full article for some of the most important general considerations on the importance of getting contracts right.