Written Contracts in Business: Insights from Sankoty Lakes Dispute

In the world of business, deals are made and broken every day. Some agreements are sealed with a handshake, while others are meticulously documented in lengthy contracts. The recent legal saga surrounding the Sankoty Lakes development serves as a poignant reminder of the importance of clarity and documentation in business dealings.  

The Case Unraveled

The case revolves around a dispute between Dwayne Atherton and Kim Blickenstaff regarding the development of the Sankoty Lakes development. Atherton alleges that Blickenstaff and his nephew, Greg Birkland, promised him a partnership in the endeavor in exchange for his contributions to its planning and construction. However, Atherton claims that he was later fired without becoming a partner, leading to a lawsuit alleging breach of contract and fraud.  

The Importance of Written Contracts

At the heart of this case lies the question of whether an oral agreement, purportedly made between Atherton and Blickenstaff, is legally binding – if it exists at all. While oral contracts are considered valid, proving their terms can be challenging, especially without written documentation. This highlights the first crucial lesson from the Sankoty Lakes case: the importance of getting all deals in writing.  

Clarity and Documentation

In the business world, written contracts serve as a roadmap for parties involved in a transaction. They outline the rights, obligations, and expectations of each party, reducing the risk of misunderstandings or disputes down the line. By documenting the terms of an agreement in writing, parties can refer back to the contract in case of disagreements, providing clarity and legal protection for all involved.  

Professionalism and Formality

Moreover, written contracts offer a level of formality and professionalism to business dealings. They demonstrate a commitment to transparency and accountability, signaling to all parties that the agreement is to be taken seriously. In contrast, relying solely on oral agreements can leave room for ambiguity and uncertainty, potentially leading to costly legal battles like the one seen in the Sankoty Lakes case.  

Critical Elements of a Written Contract

What should a written contract entail to ensure comprehensive coverage and protection for all parties involved? Firstly, a written contract should clearly outline the terms of the agreement, including the rights and responsibilities of each party, the scope of work or services to be provided, deadlines or milestones, and any financial considerations such as payment terms or compensation.  

Addressing Contingencies

Additionally, a well-drafted contract should address potential contingencies or scenarios that may arise during the course of the agreement. This could include provisions for dispute resolution, termination clauses, confidentiality agreements, and mechanisms for addressing changes or amendments to the contract. By anticipating and addressing these scenarios upfront, parties can mitigate risks and avoid potential conflicts in the future.  

Review and Understanding

Furthermore, it is essential for all parties to thoroughly review and understand the terms of the contract before signing. This ensures that each party is aware of their obligations and rights under the agreement, reducing the likelihood of misunderstandings or disputes later on. Consulting legal counsel or experts in the relevant field can also provide valuable insights and ensure that the contract adequately protects the interests of all parties involved.  

Conclusion

In conclusion, the Sankoty Lakes development case serves as a stark reminder of the risks associated with relying solely on oral agreements in business dealings. While oral contracts may be legally binding, they are often difficult to prove and can lead to costly legal battles. By contrast, getting all deals in writing provides clarity, protection, and peace of mind for all parties involved. In an increasingly complex and competitive business landscape, written contracts are not just advisable – they are essential for safeguarding the interests of all stakeholders and ensuring the success and integrity of business transactions.