Any business transaction can give rise to litigation.
This is particularly true for companies that do not regularly transact business with the same customers. These companies cannot rely on their customers' desire to maintain an ongoing business relationship to produce an amicable resolution of a commercial dispute. Given the very real potential for litigation, businessmen and women should plan for it as they do other contingencies that may befall their operations, such as a warehouse fire or the insolvency of a purchaser on credit. But companies can take defensive measures that will benefit them when suits occur. The benefits of preparing such documentation far outweigh the potential adverse consequences.