Why written contracts matter in commercial dealings

Many commercial arrangements begin informally and work well until something changes: a delivery is late, a payment is disputed, or the parties recall different terms. A written contract is primarily a record of what was agreed, and only secondarily a document for a dispute.

Useful contracts identify the parties precisely, describe the goods or services in specific terms, state price and payment timing, allocate responsibility for the things most likely to go wrong, and explain how the relationship can be brought to an end.

Equally important is what happens after signature: keeping the executed copy, recording variations in writing and following the notice mechanism the contract itself sets out.

This note is general in nature. Contract requirements depend on the transaction and applicable law, and should be reviewed for your specific arrangement.