Most businesses enter into contracts on a regular basis. Common contracts include leases, employee contracts, contracts with suppliers and service contracts.
Minnesota law requires that some contracts be in writing in order to be enforceable, such as real estate contracts or contracts for a term of greater than one year. Many contracts are verbal. The advantage of written contracts is that there is less chance for question about the terms of the contract, because the terms are in writing. This can help reduce contract disputes. Most routine written contracts can be prepared without an attorney. In cases where a contract involves unique terms or the amount of money is significant, then the business should hire an attorney to help prepare or review the contract.
Verbal contracts are usually quick and efficient. A business should avoid a situation where there are verbal contracts with no collaborating information or evidence. Disputes involving such contracts can deteriorate into a “he said, she said” dispute which can be time consuming and costly. Often, courts will rely on course-of dealing evidence to help interpret a verbal contract.