A written contract advantages the social gathering with the least energy.

Energy is likely to be within the type of cash, entry to loads of legal professionals or just a willingness to burn all of it right down to the bottom.

Within the second earlier than a contract is signed, the lower-powered social gathering momentarily has extra energy. That’s as a result of the opposite entity needs what you’ve got. However as quickly as they’ve it, it’s solely the contract that provides concrete safety in opposition to future occasions.

Handshake agreements are nice when there’s an ongoing, steady interplay. So long as all sides is honorable, the opposite social gathering can proceed to do what they stated they have been going to do. However when priorities or outdoors components shift, an at-will association can find yourself harming the one who can least afford it.

The 2 issues to concentrate on are:

1. Is the contract particular sufficient in order that there’s little question about who is meant to do what, even when the world modifications?
2. Are the cures within the contract clear sufficient in order that if the contract isn’t honored, the lower-power social gathering can simply and effectively receive a good outcome?

Because of this including a binding casual arbitration clause to a contract is a brilliant concept. Why it is sensible for there to be employee and different protections within the legislation. And why we have to reinforce and applaud judicial techniques that implement clearly outlined agreements.