What are the benefits of a written contract? Are there any pitfalls? Residents of Miami and other nearby areas of Florida may want to learn more about both the pros and cons of having a written contract.
The fact that it is in writing makes the contract binding to all parties. According to Sapling, the responsibilities, as well as the terms and duties, may be part of the written contract. Rather than trying to remember the terms of an agreement, a written contract makes it easier for all people to follow through.
Pro: The written contract enhances enforcement
When there are contract disputes arising from agreements, especially those made verbally, the contract in writing prevents the possibility of “your word against their word.” This can cause never-ending disputes. In some states, a written contract is a necessity for enforcement through the law.
Pro: Real estate and debt payment agreements may require
Written contracts are necessary for real estate and debt payment. Why put decisions in the hand of a judge? This also makes it easier for partners to agree, such as on the dissolving of the business.
Con: There is less flexibility
Your flexibility undergoes restrictions. There may be an impact that affects future decisions. An employee who signs a contract has certain duties. On the other hand, an at-will employee may have changes to their role as the business dictates.
Con: It takes time
Writing up an agreement takes more time than verbally agreeing. It can lead to delays as well as confusion. Legal terms may not be clearly understood by both parties.
A written contract takes more time and sometimes limits flexibility, but it also makes agreements easier to enforce. Agreements between partners may also receive veracity by not relying on what they say over a friendly discussion.