The importance of putting contract terms in writing
Having a written contract can help decrease or eliminate any confusion as to the contract terms in addition to increasing the likelihood of enforceability.
February 28, 2013
The importance of putting contract terms in writingArticle provided by Law Offices of Kenneth T. Wasserman
Visit us at http://www.kenwasserman.com
People in New York make contractual agreements every day--some oral, some written. Though certain oral contracts are enforceable, it is important to have a contract in writing. A potential problem with oral contracts is legal enforceability related to evidence of the terms of the contract. In the case of a breached oral contract, terms that may have once been obvious may not be remembered by both parties, and the lack of memory will cut against one party. While a written contract may not always prevent disagreement, it is better to record the terms and conditions of the agreement to at least prevent one party's convenient loss of memory. Moreover, a written agreement can also be amended with the approval of both parties.
Terms of the contract play an important role
Having a written contract can help decrease or eliminate any confusion as to the contract terms in addition to increasing the likelihood of enforceability. Sometimes a small disagreement between contracting parties can create a big problem. Therefore, making sure all the details of the contract are unambiguous as possible can help avoid misunderstandings. It can also save friendships, which are crucial to the ongoing success of many businesses and their partners.
Using written contracts can help avoid great hardship if a client ever threatens to sue a business owner. With a written contract, a business owner can easily point to the documented relationship between the two parties as a means to resolve the dispute. This can save small businesses money on the front-end with the hope of avoiding the costs of litigation, which can quickly add up.
Written contracts are also easier to enforce in court. A written contract that meets the standards of the state's statute of frauds will ensure its enforceability no matter the subject the contract covers. Moreover, when all terms of a contract are in writing it also prevents the likelihood that oral evidence can be used as a wedge to make some parts of the contract unenforceable. Finally, the use of written contracts to document business transactions or relationships is a habit that will also bear fruit in terms of credibility and professionalism.
Ways an attorney can help draft a contract
An experienced transactional attorney can help a business outline potential legal hurdles or concerns when contracting with a new client or partner and draft the contract accordingly. A well-drafted contract can help the contracting parties avoid future disagreement and provide the basis for resolution. An experienced business law attorney can also identify whether a contract in dispute was properly created, assess the legal ground on which the business may move forward in the dispute and strategically advocate the business's interest.
To obtain advice on your business's next contract or current contracts, or to discuss an ongoing contractual dispute, contact a New York business law attorney.