REASONS TO WRITE A WRITTEN CONTRACT RATHER THAN AN ORAL CONTRACT
A contract is a document written between the two parties regarding an agreement. It is better to have a written agreement in case of a dispute because the promises made to each other are not kept. In the case of an oral agreement, it is difficult to determine the different claims of both sides, so the court will judge them based on the contract document with the signature of the relevant party.
PRECAUTIONS WHEN WRITING A CONTRACT
1. CONFIRM THE PERSON’S NAME AND LEGAL NAME
Contracts are made between individuals and individuals, individuals and businesses, and businesses and businesses. However, the important thing is that you must identify the legal name of the individual or business and use that name in the contract. Therefore, you must verify the name through documents such as a driver’s license, a government-issued license, or a registration card. In the case of a business, the type of business, such as a corporation, limited liability company, partnership, sole proprietorship, etc., should be clearly stated. In addition, you must make a contract with a person who is listed as a legal officer, such as a principal who is not an employee of the business, to help resolve the dispute in the future. The title and position of the person who signed it must also be exactly stated in the contract. If you use the wrong name in the contract, you may not be able to impose court sanctions even if you win the lawsuit.
2. THE CONTENT IS EASY TO UNDERSTAND AND EXPRESSED AS SPECIFICALLY AS POSSIBLE
The contents of the contract should be easily understood by not only legal workers, but also by the public. In addition, parties’ responsibilities and obligations should be expressed in as much detail as possible. In this content, not only the term and date of the contract but also such things as the method or timing of payment of costs and remuneration must be mentioned. In addition, because most contracts contain important personal information or corporate information and plans, it is better to prevent them from disclosing the contents of the contract to the outside, keeping the contents of the contract secret.
3. SPECIFY HOW TO CANCEL THE CONTRACT
In case the contract is not executed, you must specify how it will be cancelled. If you do not specify the exact method of cancellation of the contract, which means that the contract will be automatically cancelled as soon as any date passes or certain conditions are met, the contract will not officially end, so there is a possibility that there will be a dispute. When a dispute arises because each party’s responsibilities and obligations are not fulfilled, you do not have to go to litigation if you decide how to cancel the contract in advance, so you can resolve the dispute faster and easier.
4. SPECIFY HOW TO RESOLVE THE DISPUTE WHEN YOU DO NOT FULFILL THE CONTRACT
If a dispute arises because the contents of the agreement were not properly executed, it is important to indicate how the dispute will be resolved. If the other party does not fulfill its responsibilities and obligations, it must be included in the contents of the contract by setting forth specific dispute resolution methods, such as cancellation of the contract, fines, or leaving it to the court’s judgment. It is critical to decide which court will hear the dispute, especially if the two parties are far apart (in another country or region).This is because the court’s position has a significant impact on attorney’s fees and litigation preparation. It is also important to choose between trial and court arbitration, which can reduce the time and cost of the arbitration process rather than the trial. In addition, it is better to specify in advance which party will pay the costs of the lawsuit, such as the court and attorney, and do so in the contract.
5. NOTARIZED AFTER SIGNING
It is better to go through the notarization process at the same time as signing the contract. If you are notarized, you will not be able to claim that it was not you who signed the contract later, which is the basis for getting out of the dispute.
If a change is necessary before signing, the parties can agree to revise the pre-written contract. You can draw a line through the original content, write the revised content on it, and mark the initials of all parties concerned