Contracts are what run the global economy, not the Internet, e-commerce, wireless communications or the latest new widget. Whether you realize it or not, you enter into contracts every day and each one has the potential for windfall and liability. Sadly, many business people think that written contracts are costly and time consuming. Get an attorney involved and negotiations are certain to collapse. The opposite, however, is often true.
Contracts are the oil that keeps business running smoothly.
If you are running your own web design business, you should think of a contract as a business tool that can help you communicate clearly with your clients. Still others, such as employment contracts, should be in writing to overcome certain legal obstacles. However, generally, oral contracts are valid and enforceable. What people often fail to realize is that they are entering into contracts with or without the paper. Failing to formalize terms and conditions on paper causes several things to occur.