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Construction contracts are agreements between two parties, typically involving the exchange of money for services, such as building a house. While a basic contract can be a verbal agreement, these are legally binding but difficult to prove in case of disputes. It is advisable to always get agreements in writing to avoid complications. The speaker shares a personal experience in which failing to have a written contract resulted in a loss of about three thousand dollars, highlighting the importance of written agreements in business transactions to prevent financial losses and misunderstandings.
