The use of legal contracts can often be perceived as sign of mistrust. This is particularly when a person is entering into a business relationship with a friend, colleague or anyone that is previously known to them.

It does not have to be that way though!

When people go through the process of entering into a contract, there will often be far greater clarity on each person’s expectations and a better understanding of the arrangement. People will often say: “I can trust Fred” (for example) or “we can do this on a handshake” when entering into a new business relationship. However, it is often not a matter of whether Fred can be trusted or not.  It is often a matter of whether Fred has property understood the agreement. If not, no matter how trustworthy Fred is, potential problems lurk.

Also, contract negotiations often lead to a better understanding of the other person, yourself and your business. The process of understanding each others expectations, goals, fears, dislikes and motivations often bring people closer together. The process may also identify personal or business risks or opportunities that were otherwise unnoticed. These risks can then be mitigated or opportunities pursued.

Because of these reasons, business contracts should be perceived as a means of strengthening a business relationship and not a sign of mistrust.


Joe Kafrouni
Legal Practitioner Director
Kafrouni Lawyers


The information provided by Kafrouni Lawyers is intended to provide general information and is not legal advice or a substitute for it. Business people should always consult their own legal advisors to discuss their particular circumstances. Kafrouni Lawyers makes no warranties or representations regarding the information and exclude any liability which may arise as a result of the use of this information. This information is the copyright of Kafrouni Lawyers.

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