Simple Mistakes # 3 – Written Agreements

The Power of Written Agreements

Some businesses consider it a nuisance, or at best an unnecessary procedure, to commit agreements to a written document.  Agreed, creating a written contract can take a bit of time, sometimes there will be a cost, however whilst a verbal contract is legally valid it does require equal interpretation by both parties of meaning and intention in order to avoid dispute.

Examples of agreements to consider implementing in a written form? Simplistically:

  • Employment contracts
  • Supplier contracts
  • Customer agreements
  • Contractor agreements

What are some of the benefits of written agreements?

  • Signed mutual agreement between the parties
  • Easily accessible information
  • Reduced opportunity for dispute with regard to meaning and intention
  • Reduced risk of misunderstanding

It pays to take the time and effort to produce a written document at the start of the engagement; a much more effective process than determining an answer in resolution to an undocumented business agreement.

Compliance Essentials can assist your business with internal process and systems; contact us www.complianceessentials.com.au

 

 

 

 

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