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Understanding business contracts
You may:
- be a purchaser of goods and services
- be a supplier of goods and services – retailer, wholesaler, independent contractor
- have a partnering agreement with other businesses – partnerships, joint ventures, consortium.
Written contracts may consist of a standard form agreement or a letter confirming the agreement.
Verbal agreements rely on the good faith of all parties and can be difficult to prove.
It is advisable to make sure your business arrangements are in writing, to avoid problems when trying to prove a contract existed.