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Return
to Christian Legal Chronicles GET
IT IN WRITING! By
Matthew B. Tozer Christians doing business with
Christians. Christians entering in a business
partnership with other
Christians. “Let’s be
casual.” “We’re brothers and
sisters in
Christ.” “We don’t need
attorneys. We don’t need
accountants.” “We don’t need a
written agreement. We can work it
out as we go.” Many Christians assume that,
just because they’re
doing business with other Christians, they can skip the formalities of
a
written agreement. Wrong! Have you ever heard the
phrase, “a wolf
in sheep’s clothing”? Ever heard the
saying, “You really don’t know
somebody until you live with them”? Insisting on
utilizing a written
agreement does not evidence a lack of trust;
rather, it is exercising business
prudence and good, common sense. A well-written agreement
protects all parties.
Any good written agreement covers things that will happen, can happen,
things
that might happen, and unforeseen yet potential events. What
happens when
one of the married partners dies? Does his or her spouse
become a
partner? Does a child become a partner? If one
partner wants out,
what happens? Quite frankly, not having a
written agreement in
business deals and partnerships is, in my opinion, extremely
foolish--even
amongst Christians! If, perchance, you have entered
a business or
financial arrangement without a written agreement, at least write
a written
confirmation letter to the other involved parties stating the
terms of your
agreement. That’s not nearly as good as a formal
written agreement, but,
at least, it’s better than nothing. Watch out for 11th hour or last
minute
propositions. Normally, stay clear of them. But, if
you go forward,
ask a lot of questions, perform your due diligence, careful
investigation, and,
finally, formalize the agreement in writing. Due diligence means that the
prospective buyer,
investor, and/or participant will seek to learn everything possible
about a
business, investment, product and/or other persons involved before
entering
into and signing an agreement. Even if the transaction passes
the objective due
diligence investigation, it should also pass the intuitive "smell
test." If something stinks, then there has to be something rotten
underneath. Finally, pray to God to give you
wisdom,
understanding, and clear guidance about the potential
agreement. "One
should never initiate anything that he or she cannot saturate with
prayer." If you’re dealing in
business with other Christians,
don’t lower your guard. Even if you do you trust your
Christian brother or
sister, still create comprehensive written agreements when entering
into
business deals with them.
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