The Commercial Engineer's Desktop Guide

| Practical pointers | So far, it should be clear that in contractual dealings there are two golden rules. Firstly, be clear when words and actions are not intended to have any contractual effect. Secondly, when it is time to make a contract, write it all down in clear, complete and unambiguous language. But it has already been mentioned that most simple contracts do not have to be in writing at all. However, as a matter of professional necessity companies adopt a practice of committing all contracts to writing. This is for several good reasons. Firstly, the subject matter and rights and obligations of the parties may be extensive in description and definition. This naturally demands commitment to paper. Secondly, it is vital that both parties are clear and share the same understanding of the contract. Thirdly, as individuals move on, it is important that their successors can inherit a clear understanding. Fourthly, a written contract is a sound baseline for changes in requirements, rights and obligations that may arise and become contract amendments. Furthermore, in the event of a dispute during or after the completion of the contract a court will be better able to reach a decision based on written evidence. Finally, where many functions within the company will exchange correspondence with their opposite numbers, it is important to know which bits of paper actually constitute the contract. |