The importance of a written contract

A written contract ensures that all of the terms of your agreement are documented,  different from an oral contract, refers to a contract in the form of written words. In practice, a written contract is usually expressed in the form of a contract, a letter and a data message.

Compared with oral contract, the advantages of written contract are as follows:

1. The agreed content is clear, the relationship between rights and obligations is clear, and it is easy to perform and supervise
2. In case of a dispute, a written contract is easier to verify and settle.

A written contract is usually not required to adhere to a certain fixed format, but the basic content should include:

1. The names of the parties
2. Rights, obligations and responsibilities of the parties
3. Term of validity, date and place of execution
4. Signature or seal of the parties concerned

Written contracts can be divided into ordinary written contracts and special written contracts.

Ordinary written contract refers to a contract that is concluded after negotiation between the parties and can be established without performing other procedures.

The special written contract refers to the contract which needs to be notarized, certified by a third party or approved and registered by the relevant authorities according to the provisions of law or the agreement of the parties.

Problems to be noted when signing a written contract:

1. The signing of a written contract shall be made through friendly negotiation on the basis of equality and free will between the two parties.
2. The content and form of the written contract must conform to the laws and regulations, and shall not violate the compulsory provisions of the law or public order and good customs.
3. The terms and conditions of the contract should be consistent and free from inconsistencies. For example, the name, specification, price, quantity and other information of the goods in the sales contract should be consistent.
4. All terms of the contract must be fully negotiated by the parties and should not violate the principle of fairness and good faith.
5. The terms and conditions of the contract should be complete and circumscribed to prevent mislisting or omission of major items.
6. The wording of the contract should be accurate, clear and precise, and avoid ambiguity. Try to avoid vague words such as “probably” and “might”

The importance of a written contract

1. Signing a written contract is conducive to reducing the risk of breach of contract, thus promoting the development of social economy. Oral contract is difficult to truthfully record the agreement of the parties, while written contract can record the agreement of the parties in the form of words, which can prompt the contracting parties to strictly perform the contract, and promote the rapid development of social economy.
2. The conclusion of a written contract is a condition of its effectiveness under certain circumstances. Usually, the form of contract is not limited to writing. However, in some cases, the signing of a written contract may be a condition for the contract to become effective. For example, according to the Civil Code of China, if a law or administrative regulation stipulates that a contract must be in writing, or if the parties agree that the contract must be in writing, then the contract shall be in writing.
3. The signing of a written contract is conducive to the protection of rights of the parties. A legally formed written contract is protected by law and allows the other party to seek legal remedies in the event of default by one party. (Legal remedies include but are not limited to litigation)
4. The signing of a written contract is the basis for the parties to perform the contract. The stipulation on the rights and obligations of both parties in a written contract is the basic basis for the parties to perform the contract, and plays a positive role in promoting the performance of the contract. The signing of the written contract can effectively restrain the breach of contract and protect the legitimate rights and interests of the parties to the greatest extent.

Warm Tip:

In practice, in view of the complexity of civil and commercial activities, it often takes a long time to observe and verify whether the transaction object is honest, and the legal risk is large. Therefore, the signing of written contracts has become an important way to guarantee the security of market transactions and maintain the stability of economic order.