A contract is an agreement between two or more parties which contains promises that are legally enforceable. Contracts are at the heart of most business transactions, and it is important to understand this area of the law.
In Arizona, verbal contracts are generally enforceable unless the contract falls within the statute of frauds (ARS § 44-101). These kinds of contracts include, but are not limited to, the following: an agreement for a guaranty; an agreement for the sale of goods of $500 or more; an agreement that is not to be performed within one year; and an agreement for the sale of real property.
Even when a verbal contract would legally suffice, it is often preferable to commit the contract to writing. Doing so increases the likelihood that the parties understand the agreement in the same way. It can also help avoid disputes when parties remember an oral agreement differently, even when they are both trying to live up to the contract. And oral contracts are, as you might expect, more difficult to prove in the event litigation becomes necessary.
Over many years, courts have developed elaborate rules for interpreting written contracts, with the primary objective being to determine the intent of the parties. As you set out to write a contract, be specific in describing the mutual obligations and expectations of the each party. Take time to think through the expected relationship and the different possible scenarios that may play out. Make sure you address all the important issues in a way that is legally enforceable. An ounce of prevention here can be worth a ton of cure.
Finally, no matter how well written your contract, in the end it may be worth no more than the integrity of the other party. Failure of the other party to honor its contractual obligations can create havoc, and even when you are 100% in the right and when you must go to court to protect your rights, litigation can be expensive and emotionally draining. Choose carefully your contractual partners. Maximize your chance of success by doing business only with people of integrity and good faith.
For help with your contract needs, whether writing a contract or seeking help in enforcing your rights, call us at Gillespie, Shields & Durrant. We can help. | 
