Recently, in reaction to a concern concerning legal threat management uploaded on LinkedIn, someone reacted with a rant concerning how lawyers screw companies up and the legal system deprives individuals of their rights, ending with an admonishment to avoid attorneys and also courts completely by – get this – never ever utilizing a contract.

Hmm … Interesting idea. I ask yourself why the concept hasn’t been universally approved by business owners almost everywhere.

Perhaps because it’s difficult.

You could, of course, try never to make use of a written contract. If your vendors, vendors, and subcontractors will certainly all consent to that, of course. Implying not just that every arrangement is secured with a smile and also a handshake, but likewise that people you owe appear personally, stick their give out, and you pay them on demand, with cash money.

You would certainly still stop working.

Because even if you were scrupulously cautious not to put anything in creating, ever (not a letter, email, paper napkin, paper plane, nothing), as well as even if you might persuade everyone with whom you do any type of kind of company to do the exact same, simply reach an arrangement regarding terms, smile and tremble hands, as well as you might very well have actually simply created a contract. That’s right, an agreement, whether you like it or otherwise, and with terms which, because they are not jotted down, are so ambiguous, such a relocating target, that they simply might have to be decided in an adversarial setting such as a court, based on “he stated, she said” “evidence”, by somebody that had nothing to do with working out the arrangement, has no connection with any of the events, wears a moving bathrobe, sits behind a high work desk, gavel in hand, has a distinctly tyrannical attitude, and also has the power to seriously detrimentally affect your bottom line.

A contract by any other name … is still an agreement. A lawfully binding arrangement. You just can not work without one.

Even if I were not a lawyer, my inclination would certainly still be to promote taking control of one’s destiny by crafting one’s own written contracts, with the risk of changing stipulations that follow the laws in one’s own territory in order to actually achieve the protection one wants, as a way to achieve one’s very own appropriate level of a legal risk. That’s just my character, truly.

I am a large advocate of having a system for everything you possibly can in your service. Developing and/or embracing service systems (a) forces you to recognize specific business dangers as well as objectives after that (b) offers you the tools to prevent the risks to achieve the goals, and your organization contracts, if composed properly, are the most important company system you (as well as your workers) have. If you don’t have your very own organization contracts, after that your suppliers, providers, subcontractors as well as indeed, also customers, will enforce a system on you that may not be to your preference (or beneficial to your profits). The solution is not to try to escape (by, for instance, rejecting to make use of written contracts). The option is to have your very own, premium, system in place, and to demand using it according to Cyber Prev.