- November 23, 2024
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A handshake should be enough, but contracts are still necessary in present-day business.
BY DIANE MICHAEL | CONTRIBUTING WRITER
At a very impressionable age, I was lucky to have a father who taught me the importance of a firm handshake. Little did I realize how important that was — not only as a sign of confidence (Seriously, who's a fan of a limp shake?), but also as a way of sealing deals.
The handshake dates back to the Wild West, as a way to indicate that a fellow traveler was not armed. But unfortunately, gone are the days of doing business on trust alone.
In an era of pre-nups and phone book-sized contracts, more and more companies are wanting papers signed before any services are rendered.
I'll always remember the first time Ormond Beach attorney Michael Slick explained to me what an 8.5-by-11 contract meant. "It's a really expensive piece of paper," he said.
But more expensive can be recouping time and money lost in the wake of broken promises. Nixon said, "Trust everyone, but cut the cards."
Remember, your word is your bond, as they say, and your signature (today's handshake) is an extension of that. But your contracts have to be solid.
"If you have a poorly written agreement, you might find that Florida law gives the other party the upper hand." Ormond Beach business attorney Erum Kistemaker said. “Well drafted contracts will reduce problems and strengthen business relationships. The devil is in the details. Things such as payment terms, warranties, delivery of products, scope of services, dispute resolution (i.e., avoiding court) and other less glamorous, but important, issues should come up.
"Additionally, contracts aren't crystal balls; observing how the other party deals with a contract is enlightening. Red flags should fly when the other party signs the agreement without reading a word or objects to reasonable terms.”
Quick Tips:
If you don't agree to a term, ask the business owner to change and have both parties initial.
Read, read and read again. Don't feel pressured to sign too quickly.
Ask to have a short rate implemented where applicable. That way, you can change your mind while honoring your word.
Keep your contracts short and sweet. Lengthy terms can become overwhelming. For more in-depth contracts, hire a local attorney.
*Diane Michael is the communications director of The Callan Group, a custom newsletter company in Ormond Beach. Visit www.thecallangrp.com.
