6 Reasons Why Written Contracts Matter

Not all contracts are written, but it's best if yours is. Today we're going into the 6 key reasons why having a written contract is important for every doctor. From ensuring memory and clarity to providing legal enforceability, let's discover how a well-drafted contract protects your interests and sets you up for a rewarding career.

1. Memory and Clarity

People often forget details of what they said, also known as 'verbal agreements,' especially when dealing with multiple employers or job offers. For example, an employer may promise a specific number of vacation days, but without clear documentation in the signed contract, this can be disputed later. A well-written contract makes sure all terms and promises are clearly documented, preventing any mix-ups and providing a clear reference for the future.

2. Consistent Interpretation

Verbal agreements can lead to different interpretations. For example, you might agree verbally on "occasional" night shifts or "reasonable" call duties, but your definition of occasional and reasonable might be different from your boss'. Written contracts are purposefully written with many vague terms, but by making sure all the terms in your contract are clear you avoid any future misunderstandings and allow everyone to understand the agreement in the same way.

3. Enforceability

Oral contracts are impossible to enforce legally. "You said, she said, they said" is not a good defense. When (not if) a dispute arises, proving the terms of a verbal agreement will be complex and expensive. For instance, if you were promised a specific bonus verbally and your employer denies it later, you will not win that legal battle and will cost more than the value of the bonus. However, a written contract is legally binding and straightforward to enforce since you have a clear, documented agreement.

4. Amendments

A clearly written contract outlines how changes or amendments can be made. Most contracts specify that no changes are allowed without written consent from both parties. For example, if you want to change your working hours after six months, knowing the amendment process is important if you want any change to occur. Understanding these terms before signing makes you aware of how flexible the contract is.

5. Merger Clause

All the contracts that I have seen include what is known as a merger or integration clause. This clause states that the written contract represents the complete agreement between the parties. This means that any previous verbal or written agreements not included in the contract are not valid. For instance, if you were verbally promised a specific type of support or resource, it must be included in the contract to be enforceable, otherwise it didn't happen.

6. Clear Expectations

A written contract clearly outlines the duties of the employee and the obligations of your employer regarding resources like space, equipment, and team members. This clarity helps create a sustainable work environment. For example, if your job requires specific medical equipment or support staff, make sure you include these details in the contract so you have the necessary resources to care for patients effectively.

Final Thoughts

Clarity in your contract is something you will not be given, you will have to fight for it. Contract clarity is essential for protecting your interests and making sure you and your boss have a mutual understanding. Having clarity will help you avoid misunderstandings and conflicts, and make sure that you are both on the same page from the start.

Whenever you are ready, you can join the residents and fellows who now have the real contract thanks to my flagship course. The Real Contract teaches you exactly how to deconstruct your offers and get to the true meanings and intentions of your employer. Come in and get everything your employer wished you didn't know.