5 Key Dangers of Not Signing a Contract
The Miami civil litigation lawyers at Pimentel & Castillo have represented countless clients whose cases could have been avoided if only they had operated under a well-constructed contract. The purpose of a contract is to legally hold all parties engaging in business with one another to agreed-upon terms. When one does not exist or is simply not signed, navigating the process of holding another party accountable should those terms be broken is far more difficult. Often, it involves a civil trial that could have otherwise been avoided, costing the party who is not at fault both time and money.
Here are five problems that can be avoided by signing a contract.
1. Unclear Expectations
The only way to judge the success of an outcome is to weigh it against what was expected. If expectations are not clearly communicated by all involved, the likelihood that one of the parties will be left unsatisfied is much greater than if a signed contract outlines what is to be expected.
2. Payment Issues
If a business renders a service, getting paid for that service is expected. Yet, without a contract detailing how much will be charged and when that amount must be paid, clients or customers may be uncooperative. A contract benefits the party receiving the services in this scenario as well, by providing legal protections from additional charges that aren’t noted in the signed agreement.
3. Difficulties Understanding the Law
Very rarely are the parties entering into an agreement legal experts. A contract drawn up by an experienced contract attorney provides a legal framework for the agreement. This makes clear the obligations of all involved and who exactly is liable for what. More importantly, it helps the parties understand if they have legal standing for a dispute should problems arise.
4. Lack of Trust
All relationships are built on trust, whether they be business or personal. A signed contract can help establish this trust, giving all parties a clear understanding of what can be expected from them. Additionally, it provides a reference point for any questions that may arise.
5. Lost Disputes
When there is no signed contract to fall back on, the odds that a dispute will arise increase significantly. Without a written agreement, the party who is not at fault will likely need to seek legal recourse in this situation. In the worst case scenario, the party could lose the dispute due to a lack of legal framework outlining the terms.
Whether you need assistance drafting a solid contract or representation in a civil trial, our Miami civil litigation lawyers are here to help. Give us a call today to schedule a free consultation with one of our skilled attorneys.
