Sam Goldwyn said “A verbal contract isn’t worth the paper it is written on”. For the most part contracts do not need to be in writing but in practice he is often right. 

Ideally a contract needs to contain four things:

1. Make sure that you are making the deal with the right person. If the person has no money then if the deal goes   wrong there is no point in suing. If the person does not own the car that you are buying and you give him the money then you may need to kiss goodbye to the cash. 
2. A description of the property. If it is handed over in exchange for the cash there is no problem. But if not, have an inventory list attached to the contract to properly identify the goods.
3. The price. Is it inclusive or exclusive of GST?  If you are buying a right to use something e.g. Software, system, design, logo make sure the price includes the right to use it again and again and not as a one off.
4. Make sure you can prove there was an agreement. Get a signature. This can be electronic e.g. by email.

When deals go wrong expect everyone to deny (or at least not admit) anything against their interests. Send important letters by email and post as well. Call up to ensure they have it. Confirm conversations in writing.

If you do not have things written down the “goal posts” move. Why do you think they invented goalposts in the first place?

© Paul Brennan 2015.
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