Tunde, a skilled tailor in Lagos, received a large order from a new client, Mrs. Adeola, who needed several custom outfits for a wedding and promised to pay well. Excited about the order, Tunde and Mrs. Adeola discussed the terms verbally, and Tunde started working immediately. He bought expensive fabrics and worked tirelessly to complete the outfits on time.
When the outfits were ready, Mrs. Adeola claimed they were not as expected and refused to pay. Tunde had no written agreement to prove their arrangement. Without a contract, he couldn’t enforce the payment and ended up facing significant loss.
Tunde’s story highlights why having a written contract is essential, whether you’re running a business or making a personal agreement. Here’s why contracts are important:
Importance of Contracts
- Clear Agreements
Contracts ensure everyone understands their responsibilities. They clearly define the terms and conditions of an agreement, helping to avoid misunderstandings and arguments.
- Legal Protection
If someone doesn’t fulfill their part of the deal, a contract gives you the right to take legal action. It serves as a reference point for resolving disputes.
- Risk Management
Contracts can include details about what happens if things don’t go as planned, including clauses for unforeseen circumstances, ensuring your business is prepared for eventualities.
- Enforceability
Contracts are legally binding documents. In the event of a breach, the non-breaching party has the right to seek remedies in court.
- Professionalism
Having detailed contracts shows that you are serious and professional about your business. It builds trust with your partners, clients, and suppliers.
Conclusion
Using contracts in your business protects you and ensures everything runs smoothly. For any assistance with drafting and reviewing contracts, contact AIF LEGAL at info@aiflegal.com.ng or 07065850170.
Leave a Reply