Clear and concrete concepts not only guide performance and limit ambiguity in the event of litigation, but the negotiation process can also clearly indicate whether there is an agreement to be documented. The issues that often leave oral contracts unanswered often lead the parties to start the delivery as part of an “agreement” only to find – once time and resources have been spent – that there are major disputes between them. Negotiations on a written treaty would probably have revealed these issues very early on. The “devil is in the details,” in other words. The treaties will also hold each party to its original agreement. In a SaaS contract, for example, one party agrees to provide software to the other party for a specified period of time, and the other party agrees to pay the supplier for the same period. The treaty is the way in which both parties are responsible for the conditions they set at the beginning of the relationship. The certainty that the treaty cannot be vague, but that it must be free of doubts. The uncertain agreement is considered inconclusive. If there is a problem, the written agreement will greatly facilitate the application of the legislation. If the client decides to cooperate with another agency for half of the project, the supplier could take legal action to be paid for the work done.
On the other hand, if the service provider does not perform well, the provider has legal protection against labour compensation. Not only is it advisable to obtain business contracts in writing, but certain types of contracts must be written to be enforceable. This includes (but not limited to) contracts for the sale of real estate, the rental of real estate for more than one year and compensation agreements of another. In addition, certain contracts for the sale of goods under the single code of trade – such as the sale of goods priced above or above US$500 – must be made in writing. The benefits of a detailed, clear and well-written contract are immense. Making written agreements with parties with whom you deal, including customers, suppliers, contractors, partners, shareholders, LLC partners and investors, should be a basic business practice. There are many other reasons for having a written contract, with the exception of evidence that can be reported in litigation.