The need to ensure proper legal documentation in all business transactions cannot be over emphasized. It is the best way to avoid unnecessary controversies which could ruin a good relationship and destroy your business.

It is always easy to neglect written contracts when entering into business transactions with friends and family members. I remember interviewing a client who said she felt it was not necessary to put her contract in writing since the other party is her good friend, she felt it would insinuate lack of trust and she didn’t want to appear rude to her friend. 

However, things didn’t go on as they both expected, she fulfilled her part of the contract and the other party did not. Now, it is difficult to enforce the contract because it’s not written and the other party has vehemently denied some terms of the contract which has cost her a lot of money together with the friendship.

As a business owner, always insist on legal documentation when entering into a contract, let the obligations and benefits be clearly spelt out, don’t mix business with friendship, save yourself the heartache that comes with breach of unwritten contracts. Let everyone know your stand and your business will take a smooth ride.

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