The importance of written agreement in business
Khalid Khan
January 30
A lot of deals take place between parties on mutual trust, friendly basis, acquaintance basis, relationship basis etc. Without formally getting that into writing until things get sour, the relationship gets spoiled and condition changes. Then, when you go to see your lawyer the first thing he asks you is, "do you have it in writing"?

I am sure you might have been in such a situation and if not you then you must be knowing someone who has been in such a situation.

I personally while dealing with anyone make sure we have a written agreement and if not possible then for sure I keep the communications via email because those emails are proof of the deal and acceptable in the court of law as well. It is very important to understand that the courts might also not accept your verbal claim unless you have any other strong evidence to prove your claim.

The only reason for documenting an agreement is not to use it at the stage of litigation, but a properly documented agreement containing all the relevant clauses can always be referred to by the parties in case there is a disagreement between the parties regarding any issue like management, appointment, expansion etc. However, that is only possible if the agreement is properly drafted and not drafted in a haste.

A properly drafted agreement must cover most important clauses of an agreement like the scope, duration, termination, responsibilities, duties, payment, force majeure, notices etc. If these important clauses are not covered in the contract, then for sure the parties have to go back to the court for defining the duties etc.

A clearly drafted contract not only help in the performance of the business, but also limit the ambiguity in day to day affairs of the business and that is why it is always important to seek the services of an attorney with experience in drafting of contracts.

Recently I was reviewing an undertaking and instead of putting the responsibility of the cost of litigation on the other party the client put it on himself just because he wanted to avoid paying the fees to the attorney and thought he could do it himself.

Therefore, from now till forever whenever you are entering into any business make sure you get it in writing.
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