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Warning! Your actions and words can bind you legally and the cost of litigation could shut down your business. However a properly drafted contract can protect your business. A contract is an agreement that legally binds two parties, that said, gone are the days where a handshake is sufficient. If someone changes their mind, no court can help you get justice, no matter how much money you lose. Thats why a well written contract is so important. It will list and explain the facts in detail and once signed by both parties it becomes legally binding. This way neither party can reject the facts or claim they are false. Businesses enter into contracts every day, thus its important for business owners to understand the legal ramifications of their decisions. Think of a contract like a cookie made of ingredients well call elements. If we have the right ingredients we can make cookies. In the case of a Contract we need to have an Offer and youll also need that offer to be accepted. This cre