Leaving everything to a verbal understanding and nothing to writing.
Disputes involving verbal contracts usually become costly and time-consuming legal battles.
When these disputes end up in court, they are often resolved through expensive trials during which the credibility of the parties becomes a key issue. Industry custom and practice and the parties' prior dealings may also factor into the resolution of certain verbal contract disputes. Written contracts, if they fairly address key elements of a transaction, could eliminate most disputes entirely. At a minimum, the written contract can narrow these disputes significantly. Using form contracts without either understanding them or knowing whether they meet the particular requirements in your state.