"I'm a handshake kind of guy. I don't usually get burned."
Contracts are like traffic lights. They don't necessarily prevent the mishap, but they do let us know who was at fault when it happens. Memories fade, self-interest corrupts, and people go broke or sometimes even die. Your "gentleman's understanding" is not worth the paper it's not written on. A simple written agreement is far better than no agreement at all. Parties need a permanent record of what the deal was and Judges want to see signed documents, not hear conflicting stories.
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