There are two primary purposes for a contract: 1. Laying out legal remedies in cases of breach of contract 2. As a formalized negotiation tool to make sure bo

There are two primary purposes for a contract: 1. Laying out legal remedies in cases of breach of contract 2. As a formalized negotiation tool to make sure both parties are on the same page People focus on #1 but overwhelmingly, the utility for a contract comes from #2. In cases where business deals go sour, actual malice is a far trailing cause to misunderstanding and contract negotiations are a best faith effort to avoid this as much as possible.