We are often faced with the vital question as to why Clients should engage a Supplier on written terms. What is more is that many businesses think that having a signed quotation is good enough. Ask any aggrieved Client – a signed quote is rarely good enough.

In most instances, quotations or similar cost proposals are nothing more than indicators of the potential scope of work and potential costs. Sometimes not even both. The problem is multi-faceted and includes that without a proper agreement:

  1. There is a large degree of uncertainty as to what you are buying and what you will be receiving. This is a common issue between Suppliers and Consumers and often the root cause of discontent. Expectations on both sides should be communicated and agreed upon.
  2. The price of the goods or services is also often unclear, and many aspects open to interpretation – which creates volatility in the pricing portion of the Agreement. Clarity should be attained when reaching Agreement as to whether the agreed-upon rate includes taxes, delivery and any other cost potentially excluded thereof.
  3. Aspects such as privacy and confidentiality are left unregulated until a breach occurs. Suppliers of many elements such as Professional Services or IT Providers (including Computer and Phone) often have access to very sensitive information to perform under the Agreement. What is more, the data is frequently exchanged across multiple platforms, including hand-delivery and email. As a result, a breach can happen intentionally or unintentionally and occur in an instant by exposing commercially- sensitive information, that destroys the business. Depending on where or when it happened – dictates resolution.
  4. What about the intellectual property (“IP”) that both parties create together? We often see these questions arise in specific Industries such as Software Development. It is true that a default presumption indicates that the Creator retains ownership, however, in many instances, the lines of creation are not always as clear as parties think and should therefore.


PocketAdvisor teaches users to identify various critical relationships that are vital to achieving business success.  In addition, we provide all the relevant legal structures, documents and contracts needed. For more information please contact us or simply enrol for one of our programs today!

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Nicolene Schoeman-Louw