Most business disputes that reach a lawyer did not begin with a bad contract. They began with a good relationship. Two people trust each other, and because they trust each other they leave out the clauses that feel tedious: payment terms remain vague, and exit terms are never discussed. The understanding is that any difficulty will be sorted out if it ever arises.
It does arise. And when it does, the trust that persuaded the parties to leave those clauses out is the very thing that has been lost.
A contract is not a sign of distrust. It is the instrument that allows two people who trust each other to remain on good terms when money becomes complicated. Clear terms on payment, performance, termination and the resolution of disagreements protect the relationship as much as they protect the transaction.
This note is for general information only and is not legal advice. For advice on a specific matter, please contact the firm.