When should you put a business agreement in writing? If you run a small business, you are making deals and agreements all the time. Frequently, the terms of these agreements are not set out in a written contract. In many cases, a verbal agreement works for both parties. However, there are some agreements that should always be in writing in order to protect your business.
One of these is your commercial lease. A bad lease can burden you with unexpected “additional rent” charges, unreasonable repair obligations and restrictions on your ability to sell your company to someone else. Another important agreement which should always be in writing is the one between you and your business associates. A good partnership or company agreement will address how to resolve disputes with your associates and how to divide the business when the relationship ends. Without a written agreement, it is difficult to resolve any disputed issue.
You may fall victim to someone else’s faulty memory or even lies. A poorly drafted agreement or one drafted to protect your associates (but not you) could be just as bad, if not worse. If you need a written contract, hiring an attorney experienced in these matters is the best approach. With an advocate on you side, you’re sure to be in good hands.