There is nothing as discouraging as a word not kept. Lies lead to time wastage and feelings of contempt to the people perceived to have told the lie. It is better when dealing with ordinary matters of life but hurts a lot when they interfere with business plans. People need to be reliable by keeping their word and learning to be reliable. This instills confidence and promotes well being of the business partners.
The most important thing in business world is time. People who are therefore reliable save on time and catch up with many deals that will form a catchment for the sought after cash. Business agreements are very important as they also entail partnerships and as we know, these are legally binding. In most cases, the agreements are signed in front of a lawyer to enforce legality. The legality serves to protect the various parties in case of a dispute or misunderstanding.
A case in point is where two friends start a company together with a joint account. If one friend seems to take control of a certain aspect, the other will develop mistrust, even though these two are blood brothers! How much more if they are only “partners”? The use of money has to be agreed upon and any step taken has to be in good faith. Anything less raises suspicion and would get in the way of the business. Trust is thus needed for a successful business agreement.
The serious business agreement causes the partners to be disciplined in dealing with the business matters, not as though handling friends’ property but as entrusted with a duty to the business clients. That way everything is kept in the right perspective and the business can run smoothly.
The agreement therefore does not need to be verbal. The parties involved should deem commitment by signing a form or a memorandum of understanding after which they agree on how best to run the business. That way all activities undertaken will not need the other parties to rasie eyebrows or question the activities.
Another reason why a good business agreement is needed is for the specification of duties. The partners agree to each handle a specific role for te smooth running and that is good. If anything stalls somewhere, all are in a position to tell where the problem is and quickly resolve to keep all things running.
There are many organizations that can help partners decide on the best formulation of agreement form which is tailored to suit their needs. The form does not only define terms and duties but also looks at dissolution and intended terms of service.
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