Written agreement: Overview, definition, and example
What is a written agreement?
A written agreement is a legally binding document that outlines the terms and conditions of a deal between two or more parties. It clearly states each party’s rights, responsibilities, and obligations, ensuring there’s no confusion about what was agreed upon.
Unlike verbal agreements, which can be hard to prove, a written agreement provides concrete evidence of the terms. This makes it easier to enforce if a dispute arises. Written agreements are used in business contracts, employment arrangements, service agreements, and countless other legal situations.
Why is a written agreement important?
A written agreement is important because it protects all parties involved by:
- Clearly defining expectations and responsibilities.
- Reducing the risk of misunderstandings or misinterpretations.
- Providing legal proof in case of disputes.
- Ensuring compliance with relevant laws and regulations.
For example, if a business hires a freelancer to design a website, a written agreement can specify the scope of work, deadlines, payment terms, and ownership rights. Without a written agreement, both parties could have different expectations, leading to potential conflicts.
Understanding a written agreement through an example
Imagine you own a catering business, and a corporate client hires you for an event. You discuss the menu and pricing over the phone, but later, the client insists that a discount was promised. Without a written agreement, it’s your word against theirs.
However, if you had a signed contract outlining the agreed-upon price and services, you could point to the written terms to resolve the issue. This protects both parties and ensures the agreement is honored.
An example of a written agreement clause
Here’s an example of a clause that might appear in a contract:
“This Agreement constitutes the entire understanding between the Parties and supersedes all prior verbal or written discussions. Any modifications to this Agreement must be made in writing and signed by both Parties. No verbal representations or promises shall be binding unless expressly included in this written Agreement.”
Conclusion
A written agreement isn’t just a formality—it’s a crucial tool for protecting your business and ensuring fair dealings. Whether for employment, services, partnerships, or sales, having clear, written terms helps prevent disputes and provides legal security.
By putting agreements in writing, you create a record of expectations, obligations, and rights, ensuring that everyone is on the same page. If you’re entering into any business arrangement, a written agreement is one of the best ways to safeguard your interests.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.