IE Business School Online Masters
Atul Tannan
July 18, 2011

What is a contract?

“A contract is a legally enforceable agreement between two or more parties with mutual obligations, which may or may not have elements in writing. Contracts can also be formed orally (parol contracts). The remedy at law for breach of contract is usually “damages” or monetary compensation.” (Wikipedia)

This is the legal term. But I’ve heard from many seasoned businessmen say that their best business contracts have been mainly verbal. Some of the best business relationships have forged through trust and not by signing contracts. At the same time many people work ONLY with contracts but know how to smartly manipulate them.

What do you guys think about this? I am sure many of you must have great experiences to share over this topic. Feel free to post your thoughts.

Looking forward to hearing from you guys.


P.S – The GMBA train is still going as fast. The train will be taking a stop at the Harvard University next week. I will share my experience after I come back from Boston.


6 Comments

Some of the best business relationships are formed by not signing contracts, BUT you must be in a position to take such a risk. Your business partner may take advantage of there being no contract or if they go out of business then you are left no where to go. I feel that all business must be done on contracts, it lessens your risk and defines set boundaries, if you can manipulate the contract to your advantage then that’s a great benefit for you. If the other party has the stronger hand then you must learn to negotiate better.

Cheers!

Comment by Bill Reyes — July 18, 2011 @ 11:57 pm

I fully agree with you. I have my own business for 20 yrs and the best business relations Ive ever made have been all through personal relationship. All the contracts I signed ended up getting broken.

Comment by Javier Suarez — July 24, 2011 @ 6:05 am

I also voted for this post, personal relation is the most important and value for business success. It is also with trust and value. Business cannot grow without trust.:)

Comment by Basement well covers — July 29, 2011 @ 12:04 pm

Nice post, im going to use this one for school if you dont mind, well i just rewrite it but its good info for me

Comment by Veel Verdienen — July 4, 2012 @ 4:20 am

i like this website because give me more information.,,.
sorry, I want to ask your website theme to be used what?
thank’s guys :)i like this website because give me more information.,,.
sorry, I want to ask your website theme to be used what?
thank’s guys 🙂
Obat Kanker Kelenjar Getah Bening

Comment by Obat Luka Diabetes — November 1, 2016 @ 3:47 pm

i like this website because give me more information.,,.
sorry, I want to ask your website theme to be used what?
thank’s guys :)i like this website because give me more information.,,.
sorry, I want to ask your website theme to be used what?
thank’s guys

Comment by cara menyembuhkan mata minus — January 24, 2017 @ 2:12 am
Post a comment

*

 
Close
Send By E-mail
 

We use both our own and third-party cookies to enhance our services and to offer you the content that most suits your preferences by analysing your browsing habits. Your continued use of the site means that you accept these cookies. You may change your settings and obtain more information here. Accept