A written contract advantages the occasion with the least energy.
Energy is likely to be within the type of cash, entry to loads of legal professionals or just a willingness to burn all of it all the way down to the bottom.
Within the second earlier than a contract is signed, the lower-powered occasion momentarily has extra energy. That’s as a result of the opposite entity needs what you may have. However as quickly as they’ve it, it’s solely the contract that gives concrete safety in opposition to future occasions.
Handshake agreements are nice when there’s an ongoing, secure interplay. So long as either side is honorable, the opposite occasion can proceed to do what they stated they had been going to do. However when priorities or exterior elements shift, an at-will association can find yourself harming the one that can least afford it.
The 2 issues to concentrate on are:
- Is the contract particular sufficient in order that there’s little doubt about who is meant to do what, even when the world modifications?
- Are the cures within the contract clear sufficient in order that if the contract isn’t honored, the lower-power occasion can simply and effectively acquire a good consequence?
Because of this including a binding casual arbitration clause to a contract is a brilliant concept. Why it is smart for there to be employee and different protections within the regulation. And why we have to reinforce and applaud judicial programs that implement clearly outlined agreements.
