A written contract outlines an agreement between two parties, which can be individuals, companies, or organizations. It ensures understanding and commitment to comply with provisions, protects both parties from breach of contract, and provides proof of an agreement. Self-employed individuals and independent contractors should have a standard agreement for each client to sign, and requesting a written contract can provide insight into the character of a business or individual. Contracts should be approved by a lawyer to ensure validity.
A written contract generally refers to a written document that outlines an agreement between two parties. The parties can be individuals, companies or organizations. All factors or parties to the agreement must be included in the agreement and each party involved must sign the document for it to be considered valid.
In many cases, a written contract is typed and presented by a licensed attorney. This need not be the case, as simple contracts can be written by the people involved. To ensure their validity, contracts written in this way should be approved by a lawyer. Most simpler written agreements will hold up in court, but it’s a good idea to double-check.
The purpose of the written contract is generally to ensure that both parties fully understand the agreement and are committed to complying with its provisions. Contracts can be between a buyer and seller or a product, between someone who hires the other person to complete a specific job, or between two parties who are undertaking a business venture together. When any individual or business signs the contract, they acknowledge that an agreement has been made and understand the responsibilities involved.
A written contract also acts to protect both parties from breach of contract. This means that if one person withdraws from the contract after services or other obligations have been rendered by the other party, legal action may be taken. For example, if a company completes work for another company and is not paid within an acceptable time frame, a lawsuit can be filed to reclaim the money earned. The written contract is generally used as proof of an agreement and the details of that agreement.
Those who are self-employed or who do work as independent contractors should have a standard agreement or written contract for each client or client to sign. This ensures that payment will be made for all completed work and allows the contractor to take legal action in the event of non-payment. In most cases, it is difficult to prove agreement without a written contract in place. The standard contract should be reviewed by a lawyer.
Requesting a written contract can also provide insight into the character of a business or individual. If someone refuses to sign an agreement outlining the details of a deal, that’s a good sign that he may be defaulting on obligations. Most legitimate trades will be willing to sign a contract.
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