Comment by fontain
9 hours ago
“A contract is toilet paper”
A little hyperbolic, but more accurate than not when laypeople think about contracts.
A contract isn’t a magic spell, it is a declaration of shared understanding that can be used for clarity and in legal proceedings.
If you think of a contract as a way to ensure you get what you agreed, yes, it is toilet paper, because a contract doesn’t remove counterparty risk.
In a fight between a piece of toilet paper backed by millions in legal spending vs a rock solid contract backed by nothing -- the toilet paper (even if it is used toilet paper) will win every single time.
A piece of contract toilet paper is still better than a bare hand shake agreement.