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What advantages do contracts bring to business relationships? Doing business in Argentina.

August 14, 2019

 

 

The written contract establishes a formal commercial relationship between two parties, establishing the obligations and responsibilities of each of them, also granting them security and peace of mind and avoiding possible future expenses in case of discrepancies.

 

Schematically, the main advantages and benefits that contracts provide to relations between companies and professionals are:

 

The contract includes a complete description of the product sold or the service provided, as well as the obligations and responsibilities that fall on each of the parties, for example, delivery times, forms of payment, quality maintenance, situations that would allow the termination of the contract unilaterally, sanctions or surcharges for possible delays and everything we can imagine and that, in any case, will depend on the specific object of the contract and the economic sector in which the commercial relationship is framed, among other circumstances.

The written contract also avoids misunderstandings and unnecessary claims because, in case of any doubt or discrepancy, it is possible to go to the document to be resolved. By extension, it also avoids unnecessary expenses.

 

From both previous advantages, it can be easily deduced that the written contract also provides security and tranquility to both parties.

 

And in the hypothetical case that it is necessary to resort to justice, the process will be simpler, faster and also less expensive.

 

On the other hand, the simple fact of having to write a contract will already be an extra effort in which both parties will raise possible situations that could occur in the future, and establish the clauses to avoid or solve them. If a contract is not made, probably, these situations could take both parties by surprise, and involve greater damage.

 

Finally, the most obvious advantage of all: the fact that the relationship between both parties is in writing will prevent certain aspects from being forgotten; and if it happens, there is a document that will attest to that.

The contract, the essential tool of the companies

 

For all the above, the contract is considered as the fundamental tool for companies and organizations to undertake all kinds of operations, transactions, and businesses with their customers and suppliers in a safe way. It is for this reason that the contract is not something that should be left for later; On the contrary, the contract must preside over commercial relations from the beginning of the contract, as it is an instrument that benefits both parties equally.

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