Contracts and its importance

A contract is an agreement between two or more parties and, as such, it must be formalized taking into account the several aspects of the business. All legal, economic and operational issues must be examined. The parties and the obligations thereof, the purpose of the contract, the penalties, the term and deadlines, as well as other important issues must be detailed in the agreement, so to provide support and more legal security to the parties. The habit of entering into informal agreements (oral agreements) for several commercial and service supply practices must be avoided to guarantee that the rights of the parties are best preserved in case of litigation. For these reasons, it is recommended that all agreements be entered into in writing, and before signature thereof, they must be assessed by skilled professionals who will check all the aspects necessary to close a deal and to protect the parties against future problems.