Contracts As a Common Phenomenon in the Business Sector Case Study

Contracts As a Common Phenomenon in the Business Sector - Case Study Example Formalities required by law have been reduced and currently, only a few formalities get required. Formalities on signing of deals and putting contracts in writing have been abolished. This has made contracting easier as parties have less legal processes involved when making such contracts. This means that oral agreements are acceptable. However, contracting in this way can be disadvantageous as parties can misinterpret, misunderstand or misremember the terms of the contract (Howells & Schulze 2009, pp.125). In a case where the agreement gets made over the telephone, the terms of the agreements should be put in writing for clear future references. Oral agreements should be summarized in writing to protect the terms of the contract from misinterpretation. In the case provided, some of the agreements made got reached over the phone. It could have been advisable that John puts such an agreement in writing. The law further provides for cases when a contract must be put in writing. This includes a case where a contract contains a guarantee. In John’s case, the agreement did not contain any guarantee. Putting the terms of the agreements in writing was, therefore, not necessary. There are several advantages that come with putting the terms of an agreement in writing. One such advantage is that formal writing is less prone to manipulation and misinterpretation as it is the case with oral agreements. When parties put their agreement in writing, copies can be made and preserved by both parties. Both parties get obliged to follow these agreements. Another advantage is that written agreements have the option of including signatures which commit the parties to that agreement (Howells & Schulze 2009, pp.125). However, considering the nature of