Recently I stumbled upon a post noting that Contracts may get in the way of doing good business, sustaining relationships, and building trust.
The author of the original article suggests that insisting everything is put in writing upfront implies that the parties don’t trust each other, which puts people in a bad place to start their relationships and negotiations.
Indeed, much business that is conducted relies on a good relationship between the contracting parties, and trust and the ability to communicate freely will only help the relationship work. Contrary to what the author of the article promotes, though, I believe that having a contract (or understanding that a contract will be written) upfront frees up the parties and allows them to develop the relationship without concern for whether each of their statements will be considered part of the agreement(s) they make.
Freedom of communication is a critical part of any relationship–business or personal–and if any statement could be construed as potentially part of the agreement because there is no written contract, that communication will be stilted. Knowing that the agreement will be written down and agreed to by the parties allows everyone to communicate freely both before and after the execution of the contract, and build solid relationship.
About Graham Martin
Graham Martin is a solo practitioner focusing on Contract law (including drafting, review, and litigation). He operates Martin Legal Services, LLC in the Minneapolis-St. Paul area.
