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Purpose Of Having An Agreement

On 11. April 2021, in Allgemein, by Norman

What if your employer wants to change the contract? If changes to the contract are desired by your employer, you should be consulted (in the form of a union or human resources department) or its representatives. During this consultation, the reasons for the change and alternative ideas should be discussed. Amendment agreements can be concluded orally or by written agreement between your union and your employer. There are many other reasons for having a written contract, with the exception of evidence that can be reported in litigation. A written contract ensures that all the terms of your contract are documented. In the event of a disagreement, there will be a document on which the parties can turn to restart the relationship. In short, a strong written contract can save money and strengthen a business relationship by helping to avoid litigation. One of the advantages of written registration of contractual terms (and security research) is that it can help identify differences between the intentions and requirements of different parties with respect to the contract. The awarding process (not the contract itself) may be one of the most important elements, as it is the process of negotiating and recording the agreement in writing, which helps to establish understanding by the various parties of the key issues. Many cases are done by a handshake. Handshake chords work well until they don`t.

Something`s wrong with business. Relationships are furious. Conditions are changing. And when they do, and you have to involve lawyers, one of the first questions you`re asked is, „Did you get this in writing?“ If you have been in this situation before and you have not reached a written agreement, you know that the protection of interests and the defence of rights are much more difficult if there is no written document explaining the terms of the agreement of the parties. If there is a problem, the written agreement will greatly facilitate the application of the legislation. If the client decides to cooperate with another agency for half of the project, the supplier could take legal action to be paid for the work done. On the other hand, if the service provider does not perform well, the provider has legal protection against labour compensation. The benefits of a detailed, clear and well-written contract are immense. Making written agreements with parties with whom you deal, including customers, suppliers, contractors, partners, shareholders, LLC partners and investors, should be a basic business practice. It is true that a written contract can significantly improve the chances of a successful legal action in violation of this treaty and can certainly help to reduce the cost of litigation by avoiding long controversies about what has been said, when, by whom and who.

However, even if the terms of the contract have been breached, the aggrieved party can often decide that the performance of a breach action could in fact harm its activity. For example, if a supplier had not been paid by a customer but was aware that the client was a local contractor who was about to go bankrupt, even if there was a high probability of „success“ in court, going into the courtroom or threatening to do so could damage the supplier`s reputation in the local community and lead to the supplier losing a potentially valuable customer. Even if the supplier is „successful“ in court, there is no guarantee that the supplier will actually receive a payment if the customer is declared bankrupt.


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