Article IV - Legal Awareness Series

 Need for formal documentation with expanding business opportunities


As the business of an entrepreneur grows from the individual personal touch-based customer base to a customer base that is emerging from society, the new dimension of this relationship requires to have more formal communication between the parties to make the business deals successful.  

To bring trust and bonding between the parties now the formal communication between the parties is needed required to be crystallized via a certain minimum business understanding between the parties in a form of written communication between the parties.

Naturally, the question arises as to what type of “formal document” we are referring to here. As we have seen in the previous Articles when in the initial stages business was through personal relationships even dealing through oral communication between the parties was instrumental in closing the deals. So when the business grows with the change of base of “personal” to “Social/Society based” relationship based the need for formal documentation becomes necessary though even in  “personal” relationship dealings also they were necessary, the rather personal relationships played significant closing the deals  successfully than through formal documentation.

So now when we talk of “formal documentation” between the parties it may take the form of any type of document that is executed between the parties for a particular deal. The nomenclature of the document is not important, but the substance of the document is very crucial and important in each deal.   

Cont...

For any query feel free to contact me.


Mahesh Vaidya
M.Com, LLM, ACS, DFM, CAIIB  
Legal Adviser
Cell Number 9769949701 / 9223173695
Email ID maheshvaidya2706@gmail.com

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