Is your deal legal? Did you have a legal document drawn up? Are you in the habit of making deals without a signed contract? That’s probably a bad idea.
Your handshake deal is legal, so why does everybody tell you to “get it in writing?” That “if it isn’t written, it doesn’t exist”? The two main reasons are:
Memories fade: You may have a very clear understanding of your agreement at the time you shake hands or hang up the phone, but what will your memory be like in six months? What will your customer’s memory be? You may both, in good faith, have different recollections of your deal. How do you decide who’s right?
People lie: When your debtor denies that a contract existed, tries to change its terms, or misrepresents the negotiated price, you have no document that establishes the truth.
When you’ve made a verbal agreement, it’s good practice to follow it up with something in writing. Even a quick email stating something like: “This confirms our understanding that you’ll pay $3,000 for 500 widgets to be delivered by next Friday to your plant. You are also responsible for freight charges.” If there are no objections, you’re in the clear and now have a paper trail in place to prove your lawsuit. If you customer does object, it’s better to resolve misunderstandings ahead of time before they cause issues down the road and loss of income for your business.
At Muller, Muller, Richmond, Harms, & Myers, P.C., our attorneys specialize in debt collection in Michigan. We can help you build a strategy customized to fit your business needs. We want to ensure you receive the best possible outcome in pursuing your case.
Since 1961, our top-rated lawyers have been dedicated to professionally and aggressively pursuing the money you’re owed in a straightforward, ethical manner. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country.
If you run out of time to file a lawsuit before the statute of limitations runs, you may lose your legal rights to recover your receivable. To protect your creditors’ rights, contact an experienced collection company in Michigan today at (248) 645-2440 for an effective resolution to your collection matters. Let the experts worry about your collections, so you have more time to focus on growing your business.