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