If your business is relying on handshake deals or vague verbal expectations, you’re not protected — you’re exposed.
At Koegle Law Group, we counsel countless businesses across California and Texas, and one of the most common (and costly) mistakes we see is the lack of clear, written agreements. Whether you’re managing employees or working with vendors and clients, written documentation isn’t just a formality — it’s your frontline defense against disputes and liability.
In this blog, we’ll break down the types of agreements every business should have in place — and why they matter.
If you prefer, you can watch a conversation covering this topic featuring Founding Partner Brian Koegle and Partner Lucas Rowe.
Why Written Agreements Matter
When something goes wrong in business, the first thing courts look for is a written agreement. If one doesn’t exist, the legal process becomes a game of he said, she said — with your reputation, finances, and operations hanging in the balance.
Here’s what written contracts accomplish:
- Clearly define the roles and expectations of all parties
- Minimize the risk of misunderstandings and disputes
- Provide a legal framework to enforce rights and responsibilities
- Demonstrate professionalism and preparedness
- Ensure compliance with local, state, and federal regulations
Two Categories of Business Agreements You Need
The best way to think about your contracts is in two categories:
1. Internal Agreements (Your People)
These documents govern your relationships with employees, managers, and internal team members.
Must-haves include:
- Employee Handbook – Even with one employee, you should have a handbook with anti-discrimination, harassment, and retaliation policies, wage/hour compliance, and workplace rules.
- Job Descriptions – These should clearly outline duties, especially in small businesses where employees wear multiple hats.
- Employment Contracts – For executive-level or performance-based roles, contracts should outline compensation, bonuses, termination clauses, and performance expectations.
📌 Pro Tip: Clear documentation improves performance, reduces confusion, and strengthens your position if disciplinary action or termination becomes necessary.
2. External Agreements (Clients, Vendors, and Partners)
These contracts govern relationships with anyone outside your business.
Essential documents include:
- Client Agreements/Service Contracts – Define deliverables, timelines, pricing, and expectations clearly. Never rely on verbal promises.
- Vendor Agreements – Ensure your business is protected if your vendors fail to deliver or dispute terms.
- Term Sheets or Memos of Understanding – If a full contract isn’t possible immediately, use a term sheet that outlines the key terms in writing. You can learn more about Term Sheets here
📌 Coming to the table with your own contract shows you’re a serious, prepared, and professional business — and helps ensure you’re on equal footing in negotiations.
What Happens Without These Documents?
Without written agreements:
- Expectations are unclear.
- Disputes become personal.
- You may have no legal standing in court or arbitration.
- Regulatory agencies may find you out of compliance.
- Your business reputation could suffer due to preventable conflicts.
Take Action: How to Strengthen Your Business Today
If you’re a business owner, HR professional, or team leader, now is the time to audit your agreements. Here’s where to start:
- Review your current contracts and documentation. Are they current and complete?
- If you don’t have a written agreement in place, create one. Even a basic contract is better than none.
- Update employee handbooks annually. Laws change — and so do workplace norms.
- Seek legal counsel to review your templates and draft custom agreements when needed.
- Train your managers to understand and enforce the agreements in place.
How Koegle Law Group Can Help
At Koegle Law Group, we help businesses protect their operations with strong employment and business agreements. Our team specializes in helping you avoid litigation before it starts — through smart, strategic documentation and proactive counsel.
Need help reviewing or creating agreements? Contact us for a consultation today.
Ready to Protect Your Business?
Don’t wait until it’s too late. Whether you’re drafting your first employment agreement or tightening up vendor contracts, we’re here to help.
