AGREEMENTS

Drafting/Reviewing Agreements

A written contract plays a vital role in any business transaction. Apart from making the agreement between concerned parties legally binding, contracts can also serve as future references, part of the business’ policies, as well serve as proof in the event of misunderstandings, complaints or disputes needing litigation proceedings


Prevent Misunderstandings

A written contract is habitually generated during a sensitive business venture between parties entering into a business agreement. The main purpose of this formal written agreement is to give each concerned party the chance to read and have a clearer understanding of the terms or conditions, including the personal expectations of each party and what they have come to terms after a thorough discussion. The written contract will also be a reminder to each party that this business transaction should be taken seriously.

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Security and Peace of mind

In any business dealing, a written contract can provide security and peace of mind to all of the parties involved in the business. For example, a written employment contract sets forth the terms between the employer and an employee with regards to their duties and responsibilities, payment and overall relationship. An employer is legally responsible in complying strictly with the employee’s wages and other benefits mandated by the law, whereas the employee is expected to perform diligently his or her assigned duties mentioned in the job description. A written contract gives ample protection on the parties involved when the agreed terms or conditions are not followed or are breached.


Guaranteed privacy

One of the ultimate benefits of having written contracts in business transactions is the opportunity to agree to privacy and non-disclosure provisions protecting complex information. As part of the agreement, the concerned parties are legally bound to hold in secrecy the transactions involved and the information shared among them, and the party that violates this confidentiality agreement would be held liable under the agreement.

Avoid expensive litigations

When a party to an agreement breaks the contract, the written agreement will be used as a general reference on what the parties have agreed and determine who is really at fault. Having a readily available written contract reduces the chances of bringing the issue to litigation proceedings, or even dragging litigation more than it may be necessary, which could be very costly and time-consuming.


Serve as an official record of the business agreement

A written contract is used as an official record establishing what the parties involved have agreed on. For instance, it provides guidance on the level of authority given to owners or managers in the business, completion date of any work contracted to a service provider, payment of work completed, or simply stating the terms on who or when to terminate a contract.

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