The Need for a Signed Contract in Every Business.

in hive-175254 •  3 years ago  (edited)

It is evident that big companies understand the importance of keeping contracts, small businesses, on the other hand, simply underestimate the need for having signed contracts for every decision made within the business. Signed contracts for decisions made within the business, saving the business from lots of crises and destructions.

I can write several pages publishing articles covering the need to have a good contract in a business but I definitely don't want to bore you with long articles, for this reason, I will simply highlight some of the cogent reasons why a good contract is extremely important for every business either it is a small or large business.

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pixabay.com image by delphinmedia

A form of commitment is created.

You can never know the intent of someone regardless of how close you think you are with the person. However, having a form of contract that binds both of you together is a sure way to have both of you keep to your own side of the agreement without having any form of fear or doubt.

The elimination of future conflict.

If there is a decision in a contract that favors one party more than the other, the party involved might not realize it immediately until a few years later, a written and signed contract is the only way to eliminate every form of conflict that may arise in the future from the parties involved.

Keeps the business in check.

When the business makes it a policy to have every form of decision-making exercise go through a signed document, it becomes a rule that everyone working in the company will have to abide by, at that point everyone in the organization knows that nothing goes in or comes out without a signed agreement to back up the proof.

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pixabay image by epicioci

A clear form of communication.

A signed agreement presents a case of clarity, it signifies that both parties agree to the associated rules (if there are any), anyone who comes across such an agreement would also admit that both parties came to a reasonable conclusion on the subject.

Increases the value of the business/company.

When a smart guest or inspector realizes that a business runs on signed smart contracts, it increases the value of that company automatically. It is clearly different from a business that runs things without a clear record or signed agreement of any kind.

Conclusion.

Regardless of how little you think your business is, you must begin by identifying the need to have a signed agreement for every decision that is made around the business. Not only does it help your business become more valuable, it also means you have a strong back up for every made decision.

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Hello friend, certainly many people underestimate the importance of a good contract, it is the best way to ensure that both parties are clear about the rules of the game, the commitments made and how to resolve any conflict if a disagreement arises or someone bends the rules, you can not rely entirely on the word of the other person, when it comes to business everyone wants to take advantage.

Absolutely @emiliomoron, it is actually very risky to depend only on words of mouth for an important business contract.

Depending on just "word of mouth" when it comes to business is very risky, so there is a need to put a signed contract in order to make it more binding. The need for signed contract cannot be overemphasized, just as you have pointed out.

Nice piece buddy, thanks for sharing

Thanks for your time @samminator, regardless of how little we think the business is, it is never good enough to simply rely on words of mouth because those unsigned agreements could always come back to hunt the business.

@tipu curate

If you are doing any business you need to sign new contract so that in the end other company will not say we have not said that thing or we will not do that thing.

A written document is a kind of promises that we have to fullfill.

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  ·  3 years ago (edited)

Thanks a lot for the curation, I am glad you did

Hi @gbenga,
It was my misunderstanding, I am very ashamed of it and apologize for it. Please don't mind. Have a good day Sir.

A signed contract is extremely needful, what better way can a company defend itself when there is an issue if not for the presence of a signed contract as a proof for both parties.