Contracts are your connection to the outside world. They do not only govern the relationship with your customers but also with your investors, your landlord, your providers, and your employees.

Having solid contracts protects your interests and showcases professionalism.

We must distinguish between Contract drafting, when you e.g., setup your own terms & conditions or want to present your contract to the counterparty, and Contract review & negotiation, when you receive a contract to sign by a counterparty and you need to assess how risky is it to sign it.

As a company, you should be able to prove the content of all your agreements. Considering that some contracts can be agreed upon without signature (see Digital signature), this does not necessarily mean that you need to have a signed version of every contract. However, you should have a written version of your agreements. This includes terms & conditions that are accepted by your customers, agreements signed with wet-ink or digital signatures, or even terms exchanged by email.

The key element is that it is very hard to prove the content of an oral or tacit agreement. Therefore, having written terms protects you from misunderstanding with your contract partners.