A contract should never be taken for granted! It serves as a tool to safeguard whatever resources you have, especially in business, and its main purpose is to establish the agreement that both parties have fixed their rights and responsibilities. Here are some of the reasons why you should not take a contract for granted.
1. To Safeguard the Resources
The main advantage of having a contract is that your resources, whether it is a cash, property, or services offered, are properly and legally safeguarded. Your client or provider has obligations that are supposed to have complied at a specific period of time. If they failed to act in accordance, the legally enforceable contract will support any legal actions necessary.
Let’s say, for example, contract matters with Geneco, a Singapore electricity supplier. You can’t just leave everything to the company unsettled because it is one of your duties and responsibilities, as a client, to settle and put everything in place before the termination of a contract. It is to ensure that whatever resources the two parties have are safeguarded.
2. To Minimize Issues or Disputes
Truth is that having a contract doesn’t mean that the transaction is free from disputes or any other issues. A contract, however, lessens the occurrence of issues in a transaction because it encourages both parties to cooperate and perform their duties. Otherwise, legal actions will be necessary.
In Geneco, disputes are minimized because the consumers are well-informed that there will be an early termination fee levied upon early termination of the contract and that they will receive their first invoice from Geneco in the company’s Self Service Portal approximately 45 days after the start date of the contract. Basically, in that case, the contract gives awareness to the consumers that discourage them to file disputes.
3. To Give Peace of Mind
The clients of Geneco have peace of mind for they know that their transactions are legally protected. They will start to build and give their trust to the company because the existing legal framework is put in place.
4. To Ensure Excellent Customer Service
If the consumers of Geneco have problems, they can always refer to the contract to get all the information needed to resolve it because a contract provides explanations about warranties, complaints procedure, refund, and returns, among others. A contract, therefore, compels the company to provide not just good but excellent customer satisfaction.
A contract plays a very imperative role in the business industry, especially in Geneco. It does not only protect both parties’ assets but also limits their liability, creates certainty, and provides in-depth coverage of the company to their consumers, among others. It is necessary to keep clients happy and satisfied and to protect the future of the company.