A buddy is lending $100,000
to a loved one.
He told me
he doesn’t want to draft up a contract
around this loan
because he ‘feels funny’
and he doesn’t want the loved one to think
he doesn’t trust her.
Contracts have nothing to do
with trust.
If you don’t trust someone,
you shouldn’t deal with them.
Period.
Enforcing the terms of a contract
with an unethical person
is almost impossible
and very, very costly.
Contracts are about
outlining the terms of the transaction,
ensuring everyone is on the same page.
This eliminates misunderstandings
and benefits both parties.
If you explain this to the other party
and the other party pushes back,
wishing no contract,
you should ask yourself why.