Contracts are a really important factor when running your own business. Although they may come across as time consuming and unnecessary it could save you a lot of money in the long run. It is important to have a contract and any other paperwork when dealing with a client well documented. Although, an oral agreement is taken as seriously as a written contract the problem with an oral agreement is proving that it ever happened, that’s why it’s common business practice to keep all paperwork well documented and up to date. In the event of a disagreement which results in a legal battle this could be the difference between you losing a lot of money or winning a case.
Another benefit of a contract is it reflects on your businesses image. A professionally written document can enhance a clients opinion of your business and can result you being taken more seriously.
Below I have attached a link on a detailed article on contracts and why we need them.