An “under written agreement” refers to a contract or agreement that is not recorded in writing. This type of agreement can be verbal or implied, and it is often used in situations where formal documentation is not required or where a written agreement is not feasible.
Underwritten agreements can be a double-edged sword, as there are benefits and drawbacks to relying on verbal or implied agreements in business dealings. Here are some things to keep in mind:
Benefits
1. Flexibility: Underwritten agreements can offer more flexibility than written agreements. Negotiations can occur more quickly, and parties can more easily adjust terms as necessary.
2. Cost-effective: If a deal is not particularly complicated, there may be little value in investing the time and resources to formalize it through written documentation.
3. Relationship building: Underwritten agreements often rely on trust and ongoing relationships. Over time, parties can build a rapport and work together more effectively.
Drawbacks
1. Clarity: Verbal agreements can be ambiguous and difficult to interpret. This can lead to disagreements down the line if both parties have different interpretations of the deal.
2. Enforceability: Without written documentation, it can be challenging to enforce the terms of an agreement if one party fails to hold up their end of the bargain.
3. Liability: If a dispute arises, parties may find themselves in a “he said, she said” situation, which can be challenging to resolve without clear documentation.
In general, it`s best to avoid relying solely on underwritten agreements in business dealings. If you must use an underwritten agreement, be sure to clearly outline the terms and expectations of both parties. It`s also a good idea to follow up with an email or other written communication that summarizes the agreement.
Overall, written agreements are typically the safest and most reliable way to ensure that both parties are on the same page when it comes to business dealings. However, underwritten agreements can offer some benefits in certain situations, provided both parties are comfortable with the potential risks.