The importance of contracts
Posted on 29th September 2020 at 10:42
Have you ever been in a situation where something that you thought that you had agreed didn't work out the way you expected? When a supplier verbally agrees to deliver to a particular specification but what has turned up bears little resemblance to it?
The ability to communicate has advanced at a rapid pace. Without following up with a written agreement over what was discussed, there is not always clarity over what was agreed or what stage the negotiations are believed to be at - was it just an invitation to treat with a counter offer or was it an offer with a definite yes acceptance situation?
The basics for a legally binding contract are very clear - Offer, Acceptance, Consideration, Intent and Capacity.
By putting in place contracts (and in this, I am talking about written contracts) it provides individuals and businesses with a legal document stating what is expected of both parties and how, if they occur, negative situations can be resolved. It doesn't have to be written in "Legal speak" - it can be in plain English so long as both parties agree to the contents.
While an oral (verbal) contract is legally binding, the problem is in proving them and the slippery slope of "he said - she said" causing irreconcilable damage to a relationship.
By writing it down - a description of the goods/services, the price and how/when payment is due is as basic as it needs to be - uncertainty is removed and both parties understand what is expected.
Pro Outsourcing can provide support to you in developing your contracts with your suppliers, ensuring that you have coverage in your business.
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