For small companies in Texas, business litigation can take its toll financially. If your business were like most, you would rather avoid business litigation if possible. Proactivity is one of the keys to avoiding litigation. If you foresee a problem blossoming or if you see an issue becoming worse, then you should problem solve in search of a solution right away.

According to Small Biz Daily, you need to have everything in writing. While a verbal contract may be legally binding, it makes more sense to document everything. The more you keep written documents, the more likely you are to have documentation to help the case. When you have an agreement in writing, you can reference the original agreement. Two businesses may dispute a verbal contract. With written documentation, it is harder to dispute.

Written contracts may also serve the purpose of deterring other businesses from backing out. When you have a verbal contract, there are ways for other businesses to call the whole contract into question. In a written contract, you already laid out the terms. You made it clear what the consequences are if any of those terms were to be broken. If it turns out that you do have to go to court with another company, you will have the vital documentation necessary. Litigants perform better in a court setting if they have written communication and contracts with the other party. Remember to back up all documentation in case of any loss.

To use this information is for educational purposes only. Nothing stated above is legal advice.