Why professional partners value professional contracts

As a lawyer who advises many young startups and influencer marketing agencies, I often hear the opinion that written contracts are boring, daunting and unnecessary. Especially in the hip, fast-paced startup scene, there seems to be a belief that contracts are more of a hindrance and that good business relationships should be based on trust rather than paper.
But in my many years of experience as a lawyer, I can say that this attitude is short-sighted and risky. In fact, it is precisely the most professional and successful business partners who place the greatest value on neatly drafted, written contracts. And for good reason:

Clarity and transparency

A detailed contract forces both parties to think carefully in advance: What exactly is the service? What does the consideration look like? What obligations and rights does each party have? By clarifying all of this in advance and putting it in writing, you create transparency and ensure that both parties have the same expectations. This avoids disappointment and disputes later on.
Especially with more complex projects and investments, it would be negligent not to have a clear contractual basis. After all, the more is at stake, the more important it is that all parties involved know exactly what they are getting into.
Written agreements are not only helpful in the event of a dispute, but also in everyday life. They serve as a binding roadmap and reminder for both sides. Particularly in the case of long-term projects, you can look up exactly what was agreed at any time. This creates structure and commitment in the collaboration. It also facilitates staff changes or a handover to successors.

Professionalism

Serious business partners do not shy away from contracts, on the contrary: they insist on them. This is because a professionally drawn up contract signals that you are serious about working together and want to build a long-term relationship on an equal footing. After all, you wouldn’t buy a house without signing a notarized purchase agreement. Why should it be any different in the business world?
Written contracts are an absolute must for any serious business relationship, especially in the B2B sector. They not only create clarity about mutual rights and obligations, but are also a sign of professionalism and appreciation. A company that insists on written agreements shows that it treats its partners with respect and wants to put the collaboration on a solid footing, which of course does not mean that every little thing has to be regulated by contract. But it is essential to insist on a signed contract for all key points of a B2B collaboration – from the scope of services and payment terms to liability issues. Anything else would be negligent and could have fatal consequences in the event of a conflict.
Especially as professional contracts no longer have to be bureaucratic monsters thanks to digital tools. With the right templates and e-signature solutions, even complex agreements can be concluded quickly, easily and with legal certainty. Companies that forgo these options are not only wasting valuable time, they are also unnecessarily jeopardizing their business relationships.

Protection in the event of a conflict

Of course, you always hope that there won’t be a dispute. But if it does, written agreements are worth their weight in gold. Because even if both sides were in agreement, memories can be misleading. Without a contract, it’s then a case of statement against statement.
With a signed contract, on the other hand, you have an objective basis that you can rely on. In case of doubt, this saves you expensive legal disputes. After all, a watertight contract is always cheaper than the best lawyer.
My civil law professor used to say: “Contracts are there to be signed”. He was alluding to the common belief that the word “contract” comes from “to agree” in the sense of “to come to an agreement” or “to get along”. In fact, however, “contract” is derived from the Middle High German “vertrac”, which means “agreement” or “arrangement”. So etymologically, the term has nothing to do with “compatibility”.
Nevertheless, there is a kernel of truth in my professor’s statement. Because in my many years of experience as a lawyer, I have found that Where there is a solid written contract, there tends to be fewer disputes. This is because a well-drafted contract creates clarity from the outset: about performance and consideration, rights and obligations, deadlines and consequences. This nips misunderstandings and false expectations, which often lead to conflicts later on, in the bud.
Of course, even the best contract does not guarantee absolute harmony. But it forms a solid basis for smooth collaboration and orderly cooperation. If differences of opinion do arise, the contract can usually be used to quickly clarify who is right. This avoids lengthy and costly legal disputes.
In this respect, I would rephrase my professor’s statement today as: “Contracts are not etymologically, but practically there to be agreed”. Because they promote amicable cooperation – even if the root of the word suggests otherwise. As a lawyer, I can therefore only recommend that everyone takes the trouble to draw up a careful contractual agreement. In most cases, this saves a lot of trouble, time and money.

Investing in the future

Yes, drawing up contracts initially costs time and money. But it is an investment that pays off. After all, legal certainty is the basis for a trusting, long-term collaboration that benefits everyone in the end.
Young companies and influencers in particular who are striving for sustainable success should not cut corners here. After all, those who shy away from solid contracts risk far more than a few legal fees in the long run.
Admittedly, the days of mountains of paper are over. Thanks to digital tools, contracts are now easier than ever to create, check and manage. From electronic dispatch to digital signatures, everything is possible. For young, agile companies in particular, digitalization offers enormous opportunities to optimize their contractual processes. Those who make clever use of these opportunities save time, money and nerves – without sacrificing legal certainty.
My conclusion as a lawyer: contracts are not “uncool”, but a sign of foresight and seriousness. Anyone who forgoes watertight agreements is not acting in a business-friendly manner, but in a business-damaging manner. Because whether it’s an influencer campaign or start-up financing, clear contractual rules are a must for all parties on the way to the top.
Of course, contracts don’t always have to be long and complicated. Short, comprehensible agreements can also serve their purpose. It is crucial that the essential points are set out in writing.
My advice to all young entrepreneurs and creatives is therefore: don’t shy away from contracts, use them as an opportunity! With the right contracts, you create the basis for successful, trusting partnerships. And that is priceless – not just from a legal perspective.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.