A small business service provider lands a big opportunity—a carefully negotiated master services agreement (MSA) with a new client. Excitement is high, work begins, and the relationship starts strong. But over time, friction builds. A dispute arises over the scope of services. The provider pulls up the contract for clarity and makes a troubling discovery: it was never fully signed. Gasp!
This happens more often than expected. One party signs, but the other does not. Or neither party signs. Or different versions are signed. Rather than addressing the actual dispute, the conversation takes a detour—first to whether an agreement exists, then to what terms were agreed upon, and finally back to the original issue. Tensions rise, costs increase, and valuable time is lost.
Preventable Uncertainty
Contracts are meant to define rights and obligations, but without signatures, they can create confusion and unnecessary risk. Were all terms agreed upon? Did negotiations continue after one party signed? Were additional obligations unintentionally assumed? These unanswered questions can make resolving disputes far more difficult.
Consider a consultant hired to develop a marketing strategy. The consultant sends a signed contract to the client but never receives a counter-signed copy. With deadlines looming, work begins. Invoices go out, but payments do not come in. The consultant references the late payment clause—only to hear the client claim that an email exchange modified the scope of work. What should have been a straightforward resolution instead escalates into a debate over what actually constitutes the contract.
A Simple Step with Lasting Impact
In the rush to start work, final execution can get overlooked. An unsigned contract sitting in an inbox may not seem urgent—until it becomes an issue. Ensuring all parties sign before work begins reduces uncertainty and helps avoid unnecessary disputes.
A few small habits can make a big difference:
- Confirm all signatures before starting work.
- Use electronic signature tools to streamline execution and ensure everyone receives a fully-signed copy.
- Keep signed contracts organized in one place, adding amendments and change orders as they are executed.
Contracts Work Best When Executed
Contracts help create structure and set expectations, but only when properly executed. An unsigned contract may still carry legal weight, but proving its terms should not be the first challenge in resolving a dispute. A missing signature may seem minor, but having a fully executed agreement can help make disputes easier to resolve and business relationships smoother to manage.
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