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Why it’s better to have a written contract

On Behalf of | Mar 4, 2022 | Civil Litigation

There are many situations in which business professionals are tempted to use handshake deals or just agree on an oral contract. Usually, this is done when they want to get things completed quickly or when they honestly trust the other party. It seems simple and easy to just agree on something that will help both of them. 

But there are a lot of problems with using oral contracts, and it’s almost always better to have something down in writing. Let’s take a look at a few reasons why.

Oral contracts lead to “he said, she said” arguments

First of all, a dispute over an oral contract with no witnesses may just leave you in a scenario where you claim one thing was said and the other party claims that something else was agreed upon. This can be very hard to sort out because both sides will adamantly claim that they are right, and there’s no way to prove it.

Checking the details helps avoid conflicts

Having a written contract can also help you avoid legal disputes simply because you can go back and look at the details. If the other party claims that they were supposed to be paid more but you have a written contract showing that you paid the right amount, you can prove it fairly quickly. This doesn’t guarantee that they won’t escalate things into a legal dispute, but you’ll still have your proof even so.

Essentially, a written contract just makes your position stronger because it’s easier to prove everything and there is far less confusion. This may help you to avoid disputes or to solve them when they occur. Just make sure you know exactly what steps to take