IS a contract necessary?
Why do people sign a contract and then do whatever?
This is a question that I get a lot. What’s the purpose of going through the time-consuming and expensive process of getting a contract signed, only to watch the other party do whatever they want anyway?
Short Answer - this is binding and you can enforce it.
There is just no way to get around a signed contract. It is enforceable! This brings initial negotiations into focus to make sure you have the best deal in front of you, but after all is said and done, the parties to a signed contract must follow the terms. If the terms of a signed deal are not followed, the aggrieved party can sue (or threaten to sue) to require the other party to do their part.
What does this mean practically?
Practically, this means two things:
Negotiate a good deal from the outset. Get a good lawyer to make sure nothing important is missed.
Keep a brief synopsis of the contract you signed to make sure both parties are doing what is required. Either party can remind the other of their obligations.
What if one or both parties just do whatever and not follow the contract?
This can get complicated. If a party allows another to do things contrary to the contract, there is a chance that these actions amount to a literal change to the terms of the agreement. While you don’t have to “police” the other party, if you are aware of a change in behavior you should make your objection known.
Know this - a written and signed contract is far better than an oral one! Just make sure you know your roles & responsibilities and the other party’s as well. The point of a contract is CLARITY.
