Do You Need a Formal Contract?

It is always a good idea to spell out the terms of a working arrangement, because such a document protects both parties

I'm an independent consultant, and I get almost all of my business through referrals from friends, colleagues, and former clients. I'm reluctant to alienate potential clients by asking them to sign a contract or letter of agreement that's probably worthless in a court of law anyway. Most of my business dealings are less than $5,000 per project. What do you advise? —L.C., South Pasadena, Calif.

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