Contracts are written agreements that the parties reaching an accord sign. While the law in Florida does allow people to enforce verbal agreements, written contracts are the gold standard for businesses.
Companies hoping to enforce a contract or hold someone accountable for a breach of an agreement often have a much easier time achieving their goals when there is a valid contract with the other. What features of written contracts make them so valuable for Florida businesses?
Clear expectations for both parties
Human memory is quite fallible. People may negotiate an agreement and shake on it, only to promptly forget the terms that they set.
Therefore, contracts can be crucial for businesses seeking to obtain damages or an order of specific performance because they eliminate any questions about the responsibilities that each party to the contract had to the other.
Rules for violations and other challenges
Contracts often include terms for how either party should seek to resolve a future contract dispute. For example, many contracts include alternative dispute resolution clauses to keep issues out of court unless compromise proves impossible.
Other contracts may have clauses assessing certain late fees or other penalties when one party breaches the agreement. The unique clauses and penalties included in a contract can potentially increase the damages that one party can claim from the other during a contract dispute. The contract can even provide clear instructions about how the parties should seek to resolve the issue.
Taking the time to commit a business agreement to writing can prove quite beneficial for an organization that depends on business relationships to ensure smooth company operations.