As a small business owner or freelancer, you may often find yourself in situations where you have obligations to fulfill, but without a formal agreement in place. Whether it`s a verbal agreement, an email exchange, or even just an understanding between two parties, obligations can arise without a written agreement. In such cases, it`s important to understand your rights and responsibilities to ensure that both parties are on the same page.
Here are some examples of obligations without a formal agreement and what you can do to protect yourself:
1. Providing services without a contract
As a service provider, you may sometimes be approached by a potential client who needs your expertise. In some cases, the client may not want to sign a formal contract, but they still expect you to provide your services. In such situations, it`s important to establish the terms of your engagement, including the scope, timeline, and fees. This can be done through an email exchange or a verbal agreement, but be sure to document the conversation and send a follow-up email summarizing the key points.
2. Loaning money without a promissory note
If you lend money to a friend or family member, it`s possible that you may not have a formal agreement in place. In such cases, it`s important to establish the terms of the loan, including the amount, interest rate, and repayment schedule. You can do this through an email exchange or a written agreement, but be sure to document the terms in writing to avoid any misunderstandings.
3. Providing goods without a purchase order
If you sell products to a customer, it`s possible that you may not have a formal purchase order in place. In such cases, it`s important to establish the terms of the sale, including the product specifications, pricing, and delivery schedule. This can be done through an email exchange or a verbal agreement, but be sure to document the conversation and send a follow-up email summarizing the key points.
Regardless of the nature of your obligation, it`s important to keep records of all communications and agreements. This will help you if any disputes arise in the future. It`s also a good idea to consult with a lawyer to ensure that you are protecting your rights and complying with any legal obligations.
In conclusion, obligations without a formal agreement are common in business and personal relationships. However, it`s important to establish the terms of your engagement, document your communications, and consult with a lawyer if necessary to protect your rights and avoid any misunderstandings.