For so many years business deals and agreements were made based on the good and trusted word of another. The idea of a gentleman’s handshake was often enough to work with one another in good faith, and the idea of official documentation just wasn’t thought about. In the modern age however this is just no longer the case and following a raft of broken words and legal issues, the smartest move for any business to make is to ensure that any deals which are brokered are signed and sealed with a contract.
Contracts are so easy to put together using services like Aerofiler contract automation & contract management, and here is why it is your most important business tool.
Protection For Both Parties
No matter what good intentions each party has, the reality is that relationships can easily break and deals can go downhill quickly. A contact is not just about your own protection, it is also about protecting the other party. Should a relationship turn sour, a contract ensures that both parties can still enforce the other to live up to the terms soon which were agreed in the beginning.
No Misunderstandings
Contracts are also perfect in making sure that everyone is crystal clear about what is expected of them. Throughout the course of a contract, you may find that there are different people executing on it, and there can often be some attempt to do things differently. In such a situation you have the authority to show exactly what was agreed upon and that leaves absolutely zero room for change or confusion.
Payment Processes
Because of the fact that contracts stipulate exactly what the payment process will be, there should be no issues regarding short or late payments. There is nothing more frustrating than having payments pending and this is again why the contract is so important. Should someone pay late or short, you can remind them that they have an obligation to pay in a certain way, on a certain date and to a certain value. Once again we see here that contracts are completely transparent, leaving absolutely no doubt whatsoever.
Contracts Are Legally Binding
Contracts are not just a signed document between you and your partner or your client, this is a legally binding document which can be imposed by law should you need to. This is why it offers the ultimate protection for both parties. In almost all cases when a contract is broken you can try to fix things between the two parties, but ultimately if the terms are broken and you cannot reconcile, you are then entitled to take legal action against the other party. This is why a contract is the most important tool you have, because it offers you the perfect safety net should things go awry.
We have to accept in business that deals get broken, promises can be hollow and relationships can easily go bad. Owing to all of this, it is essential that you have contracts in place for protection.
