Most people believe that the main reason for entering into an enforceable contract is so that they will have proof of the agreement if the other side breaches the contract. This is partially true?
If litigation ensues, it is a wonderful thing to be able to waive a signed contract in front of the jury and/or judge.
However, in my opinion, the most important reason to have a written contract is to avoid litigation and related attorney's fees. A written contract allows for each party to have a clear understanding of its own responsibilities. Even though a handshake deal may be an enforceable agreement, the obligations of each party may become misconstrued over time or there may even be an unknown misunderstanding from the beginning.
So the next time someone wants a handshake deal and says that there is no need for a written contract because they trust you. You should respond, "I value our relationship too much not to put the terms down on paper."
www.armstrong-lawoffice.com
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