Startup Funding Espresso -- Importance of Written Contracts
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In running a business, it\u2019s important to use written contracts. It\u2019s easy to negotiate an agreement verbally, but this often leaves loose ends that become a problem later. A written contract makes clear the responsibilities and duties of both parties and what each owes the other. It\u2019s often the case that both sides make assumptions underlying the agreement and those assumptions conflict with each other. A contract includes both the agreement and the consideration. Consideration is some value that is paid for the services rendered or the product delivered. If there\u2019s no consideration, then the service is considered a gift. Written contracts are required for any sale over $500, any lease over $1000, and anything that creates a security interest such as pledging real estate. There are several advantages to written contracts. It is easier to enforce a written contract. Signing a contract indicates that both parties have agreed to it. Verbal contracts are often nullified when one side or the other claims they didn\u2019t agree. Written contracts provide better recourse than verbal contracts with the courts and arbitration. Make sure you put it in writing. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0 Music courtesy of