A customer contract is a critical document to enter into when you supply goods or services to customers. A formal, written contract is a vital form of legal protection for your business, protecting you from various risks that arise when trading. This article will explore what can go wrong without a written contract.<\/p>\n\n\n\n
A contract is one of the most important legal documents for your business. It is a legal agreement that documents the legal terms agreed between commercial parties.<\/p>\n\n\n\n
A written contract<\/a> can help protect your business if things go wrong and can also help to prevent disputes. For example, your contract can include express terms giving you various legal remedies if the customer breaches their obligations (such as the right to end the contract). <\/p>\n\n\n\n You should tailor your contract to your business activities and specify the full scope of your obligations. Your contract should also carefully consider and mitigate against the potential risks of what could go wrong during your project.<\/p>\n<\/div>\n\n\n\n You can expose your business to high risk and several potential problems without a written contract. Although it is possible to enter into an unwritten verbal contract, this approach is risky. Verbal contracts can create various problems, such as a lack of evidence and certainty regarding the parties\u2019 agreement. As such, entering into a written contract with customers is always more secure. <\/p>\n\n\n\n Here are some examples of what could go wrong without a written contract.<\/p>\n\n\n\n A written contract allows you to clearly document your agreement with your customer. Your contracts will record key terms around your products or services, including:<\/p>\n\n\n\n Without entering a contract, you will lack certainty about each party\u2019s obligations. For instance, a customer might forget the agreement, resulting in misunderstandings and mismatched expectations over time (particularly for long-term contracts). Likewise, a customer could argue that you have failed to deliver the products or services on time. If there is no evidence of what terms were agreed, this could lead to arguments with customers and, in the worst case, disputes.<\/p>\n\n\n\n Disputes can often arise where there is a lack of clarity on what was agreed. With a contract documented in writing, customers can have more precise recollections of the agreement. Indeed, with a written contract, you can direct customers to the exact terms of the agreement.<\/p>\n\n\n\n A contract primarily aims to protect your business from legal risk. It can include key clauses to protect your business in several ways, including the following:<\/p>\n\n\n\nWhat Can Go Wrong Without a Contract?<\/h2>\n\n\n\n
Mismatched Expectations<\/h3>\n\n\n\n
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Greater Exposure to Risk<\/h3>\n\n\n\n
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