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Construction contracts are agreements between two parties, typically involving the exchange of money for services, like building a house. Even basic contracts can be verbal, which are legally binding but difficult to prove in case of disputes. The key takeaway is to have all agreements in writing to avoid complications later. The speaker shares a personal experience of losing $3,000 within the first six months of business due to a lack of written contracts. This taught them the importance of documenting agreements to prevent financial loss and challenges in enforcement.
