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Agreement vs. Contract: Why Business Owners Are Using Informal Agreements for Clients

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.”Should you use an agreement in your business like these business owners? Here’s the scoop on agreements vs contracts and how to decide if an agreement is right for you.Many of those who use agreements believe as contracts but are still highly effective—if not moreso.

Chrissy Bernal, who does brand management and public relations at Be a Better Brand, says that while agreements have less legalese than contracts, she prefers them “because they’re specific, easy to understand and clearly establish expectations.

I feel like contracts are often so vague they are starting the relationship off with ambiguity or concern over a lack of understanding.”For Therese Skelly, an intuitive business mentor for service-based business owners, agreements make more sense because they are collaborative as opposed to transactional.“In the coaching industry, there are those who have an ironclad contract,” Skelly explains. “‘Sign up for 12 months for the program and under no circumstances will you be given a refund’ is how it’s positioned.

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