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Contracts / Business Agreements


Why Write the Deal Down? – Why Memorialize It?




Because memories are remarkably selective—and self serving.

It's human nature. People generally remember what is convenient to remember; their brain will trick them into thinking something was said or intended that wasn’t. It’s called “selective revisionist history.” This arises from a widely known malady called “transacto-amnesia,” particularly affecting those who enter into oral business agreements. A related malady is Transactaphobia (the irrational fear of facing details of a business transaction). 

Why is it important to be clear? Business owners often say “Writing a deal down isn’t going to stop anyone from breaching it.”  True.  But not writing it down increases the odds of breach significantly, even among the honorable and trustworthy. Why? Writing it sufficiently and with enough detail serves a number of important purposes. 


  • Enables everyone to clearly understand what is being agreed to.

  • Serves as a reference tool to guide the parties.

  • Permits parties to define and limit their accountability and their expectations.

  • Affords parties an opportunity to see a deal and change terms during the editing phase before signing.

  • Creates verifiable evidence of parties’ intentions.

  • Prevents selective-memory syndrome from emerging later.

  • Each reduces the prospect for confusion, misunderstanding, or transacto-amnesia. This in turn minimizes headaches, maintains healthy business relationships, and enhances business predictability.

    Why do so many businesses routinely avoid this simple step?   Often because they don’t want to be bothered, or don't have the time. Some just have a perpetual case of transactaphobia. Others don’t want to a call a lawyer in and have the deal killed off for all the nitpicking. (Lawyers are notorious for killing deals.)

    We cure Transactaphobia.


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    1Please Note: Probizwriters, LLC does not offer legal services or advice. 

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