In business as in life often we tend to
simplify the maximum we can and especially in regards to paperwork, but too
much simplification can bring negative consequences for not clear from the
beginning all the points of the business relationship .
A large part of sales and services are agreed verbally. Legally a verbal agreement is as valid as a written one, but it is more convenient to document sales and services to avoid further problems..
The only supporting documentation proving the transaction is often the invoice if it is issued. But what if there are complaints then? What if the customer does not match with the amount? What if the bill is not paid and must prove the transaction at the time of filing a claim for recovery?
Often justify the provision of a service may be more difficult to justify than a sale. For Sales the operation can be justified based on a delivery note signed by the customer when the goods are available to him and the price of the same set.
However, in the case of services this does not work, as there is not a physical delivery of any product. Therefore, we must make clear the service that we are going to provide, how the services is going to be provided and of course the final fee to be charged to the client. A way is through a writing contract between the parts that collects all these aspects. If we think that a contract can be too formal then an application form can be choosen in which, at least , some basic terms are established.
The company-customer relationship is usually based on trust, but this lasts until you lose it and then you better clarify the roles circumstances. It is best to document all the terms of the service and not to leave room for misunderstandings or interpretations.
A large part of sales and services are agreed verbally. Legally a verbal agreement is as valid as a written one, but it is more convenient to document sales and services to avoid further problems..
The only supporting documentation proving the transaction is often the invoice if it is issued. But what if there are complaints then? What if the customer does not match with the amount? What if the bill is not paid and must prove the transaction at the time of filing a claim for recovery?
Often justify the provision of a service may be more difficult to justify than a sale. For Sales the operation can be justified based on a delivery note signed by the customer when the goods are available to him and the price of the same set.
However, in the case of services this does not work, as there is not a physical delivery of any product. Therefore, we must make clear the service that we are going to provide, how the services is going to be provided and of course the final fee to be charged to the client. A way is through a writing contract between the parts that collects all these aspects. If we think that a contract can be too formal then an application form can be choosen in which, at least , some basic terms are established.
The company-customer relationship is usually based on trust, but this lasts until you lose it and then you better clarify the roles circumstances. It is best to document all the terms of the service and not to leave room for misunderstandings or interpretations.
The legal
department VP Advisers
can advise on all matters relating
to the formal documentation of all your business relationships. For further information do not hesitate in contacting us.
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