A common problem that exists in the business world (although at first it may seem strange) is that parties fail to implement a properly constituted and executed contract between them.
A contract is the essential element of any deal, transaction, purchase, employment or arrangement. It regulates the very foundation of the agreement between the parties and sometime more importantly, governs what happens if it all goes wrong.
Many business or employment relationships are formed by friends or close colleagues and trust is an important dynamic in the relationship, however, (and this may be a cliche) business and pleasure should not be mixed.
You just never know when a relationship will go wrong or needs to be terminated. If it does you need a contract to fall back on. If the other party does not fulfil its side of the bargain, you need a contract to fall back on.
A contract should be thoughtful and cover all of the “rules” that will apply before, during and after the completion of the contract. Both parties should sign the contract and keep a copy. It may seem unessecary now but in the future you may be glad you did.