The majority of business contracts or arrangements are settled through private writings concluded between the parties. In terms of our Civil Code, the contract regulating that relationship becomes the law that regulates the parties. In other words a Court of Law, in determining a dispute that has arisen between the various players in any one agreement, will look first at the contract and enforce the contract to the same extent and in the same manner as if it were a statutory provision of law. It is a cornerstone of our civil tradition that respect is given to the binding force of a contract by adhering to the principle pacta sunt servanda. Needless to say, it is important that you get your contract right the first time round. It is exceptionally difficult, though not impossible, to amend a contract once it has been executed. And the more there is at stake, the more difficult that becomes.
No expense must be spared in drawing up the only instrument you can, and will, turn to in times of trouble. For in reality, so long as things operations are running smoothly, creditors expectations and target deadlines are being met to specification, on budget and on time, one doesn’t really need a contract. Now it is also true that a verbal agreement is as binding as written contract, and a Court of Law will enforce that contract so long as one is able to unequivocally show to the standard of proof required, the contents of that agreement. But why would you want to rely on other people’s testimony as to what, where and how was agreed. People tend to forget, change places and allegiances. Here at Calleja & associates we are very cost-efficient, so have no fear in getting your contract done, done properly and in writing!