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Construction contracts are agreements between two parties, typically involving an exchange of money for services like building a house. While verbal agreements are legally binding, they are difficult to prove in case of disputes. Therefore, it is crucial to document all agreements in writing to avoid misunderstandings. A personal experience in the speaker's first six months of business underlines this lesson, where a lack of a contract led to a financial loss of about three thousand dollars, significantly impacting their finances and taking months to recover. The emphasis is placed on ensuring that all terms are clearly outlined in writing.
