Do It With A Written Contract
Not With A Handshake, Not With A Promise

     Benjamin Franklin coined the proverb "an ounce of prevention is worth a pound of cure." This holds especially true when it comes to business between you and others. Even a single dispute can ruin your financial stability, friendships and other relationships. The days of closing a deal with a handshake and a promise are over. A person’s good word just doesn’t carry the weight it once did. The world has changed a lot. Today, we are surrounded by high fashion, high tech and a high rate of civil lawsuits. It’s up to you to not be caught with your hand out and no signed paperwork to back it up. Avoid unnecessary heart-aches and misunderstanding, if you agree to a promise with someone and intend that the terms of the promise are meant to be binding then write it down. Since memories fade, a written agreement, a contract, today is essential.

     Regardless of whether you are starting a business, a partnership, building a new home, borrowing money, making a loan, the time to create the contract is before the terms of your agreement begins. Decide what you want done ahead of time, and if you do change your mind about any items discussed in your agreement, don’t wait until there is a dispute and then try to negotiate the circumstances of the change. A carefully drafted written contract spells out your entire intentions and. prevents those with whom you entered into the agreement from unilaterally changing the arrangement at a later date and at your expense.

     Think about it. If someone promised to pay you for doing some work, or if you were told that a merchant would buy your products if you traveled to England to deliver them, or if someone says that he will transport your possessions to another state and deliver them for you. Without a written agreement, a contract, how would you know whether the agreement would be fulfilled, and if they were not, your only recourse would be to try to find the culprit and punish him and perhaps tear away from him the value of what you had lost?

     Contracts are legally binding agreements. Attorneys often use the terms "contract" and "agreement" interchangeably, but not just any agreement is a legally binding contract.

     A contract is formed by a meeting of the minds of at least two parties, a mutual assent resulting from the expression of an offer by one and an acceptance of precisely that offer by the other.

     The offer has no effect if the other person does not accept it. A mere discussion of the offer does not constitute acceptance. Negotiation often leads people to believe that they can expect other people to commit themselves to certain things, but until there has been an actual offer and a clear acceptance, there has not been the necessary "meeting of minds" to form a contract. Following are some tips for forming a contract.

· Write it down.
· Make sure you are comfortable with your obligations.
· Remember Murphy's Law.
· Make sure you are comfortable with your obligations
· Don't leave anything out.
· Cover all options.
· Don't use unclear language or try to sound like a lawyer.
· Define any ambiguous terms.
· Use Terms Consistently.

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