Trust and Contract Enforcement

By: Skjold-Barthel

Quite possibly the most important factor in business dealings is trust. Trust is built on several different factors, ranging from past experiences to first impressions. Common things associate with the ability to trust is fairness, the way a business operates, who is managing the company, and what past dealings have gone well or badly. When one has acquired the full trust of a business or company, it can be a very powerful tool, for better and for worse.

When a company trusts your business, it operates on a faith-based assumption that you and your company will operation in a fair manner, doing what you say you will do, in the manner you say it will be done. Trust is the ultimate form a credibility that gives one incredible freedom, yet also puts equally incredible responsibility upon the individual or company to uphold those beliefs.

Contracts have been built on this very principle. They are virtual handshakes that express the thought process of deal making (i.e. “You scratch my back, and I’ll scratch yours.”). This form of reciprocity may in itself enforce the terms of the contract, depending upon the value placed on the nature of the relationship.

When things turn south, however, the consequence can be far-reaching. Betraying the trust of one has an impact on your reputation with many others, thus hindering your ability to grow as a company. This may hurt your friendships as people will begin to distance themselves from you. Thousands, even millions, of dollar may be lost in the process.

The importance of maintaining trust in business relationships is imperative to growth. For more information on ways to accomplish this, contact the Skjold Barthel, P.A. law firm at 612.746.2560.