Most people understand that in the world of asset protection planning and estate protection planning, the contracts which encompass the plans in question are always in writing.  Everything you do to protect your business and personal estates involves the preparation of a contract, as does most of what you do with contractors, suppliers and even at times employees, during the course of running your business.  I thought it might be important to point out some initial prerequisites with regard to the requirements surrounding a written contract, the necessity of which, will directly affect the validity of a transaction, and thus the contract itself.  The following contracts must always be in writing:

  • Contracts involving the sale of real estate or an interest in real estate.
  • Leases of real estate lasting longer than one year.
  • A promise to pay someone else’s debt.
  • Contracts that will take more than one year to perform.
  • Contracts for the sale of goods consisting of tangible personal property, worth at least $500 or more.

However, In order to protect yourself from transactions which occur during the course of your business, I recommend that every contract you enter into on behalf of your business be in writing, in order to cement the terms of the contract in a form that is less susceptible to dispute. In this way, you are left with an assurance of what you bargained for and are less likely to expose your assets to loss should a “contrived” dispute arise.

Presented by BEST ASSET PROTECTION Services Group

WFB Legal Consulting, Inc.–Lawyer for Business

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