Too many SMEs depend on verbal agreements

Those entrepreneurs who have placed their trust in verbal agreements rather than written contracts can now benefit from a new service that has been introduced by the Forum of Private Business (FPB) in collaboration with the law advice website legal365.com. Today’s economic climate is forcing more and more business managers and owners to rely on free verbal contracts that pay bills that can run into thousands to a solicitor to draw up contracts.

This can, however, invariably lead to disputes which can incur even higher legal costs than it would have cost in the first place. Some of the areas where contracts are vital are partnership agreements, payment terms and intellectual property and copyright. The FPB and legal365.com have joined forces to offer the owners of small businesses access to a huge range of contracts and other legally binding documents that can be downloaded on demand.

The CE of FSB, Phil Orford, says that it is all too common now for small businesses to agree deals verbally and without any kind of written contract. Although the steep fees that lawyers charge can cause a financial headache, nobody should try and cut corners when it comes to making business deals. The days of gentlemen’s agreements and a handshake are long gone, and failing to have all the necessary paperwork can cause serious financial woes at a later date.