Do I need a written contract for a small project?

Of course the answer to this question is…. it depends. The benefit of a written agreement is clarity, as its job as a legal matter is to define the duties of the parties, establish the consideration to be “paid” by each party to the other, and set forth remedies in the event either party defaults on his or her obligations.

There are occasions in our personal relationship when this kind of certainty may not be absolutely necessary. But in business, the best practice is to have written agreements in place to avoid misunderstandings, preserve relationships, and when absolutely necessary, have a legal basis to obtain a remedy through the court system. That doesn’t mean the contract must be lengthy. A one page agreement is often sufficient. Other times it makes sense to include more terms to cover various contingencies.

As in all business matters, the key is to use your best business judgment in assessing the cost versus benefit to your operations. If the agreement is crucial to your business or if it will be used frequently, the answer is you need it in writing. In that event, you should seek the advice of a legal professional to assist in the drafting or review of the document.

Answer provided by Chuck Roach - Roach Law Office