Many Business Disputes Start With a Bad Contract

Contracts are part of everyday business — supplier agreements, partnerships, construction contracts, leases, service terms. Yet many disputes Cohen Legal sees across Townsville, Mt Isa and North Queensland trace back to the same issue: a contract that was rushed, misunderstood, or never properly documented.  

As Sam Cohen, Principal Lawyer at Cohen Legal, often explains, money spent on the front end of a contract can save significantly more on the back end — especially when litigation is involved.

So, do you actually need a lawyer to write or review a contract in 2026? The short answer is: not always — but often far more than people realise.

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Contracts Don’t Have to Be Written — But That’s Where Problems Begin

Under Australian law, contracts don’t always need to be in writing. A contract can be:

• Written

• Oral

• A mix of both

But just because an oral contract can exist doesn’t mean it’s a good idea.

“The biggest issue with oral contracts is proof,” Sam says. “How do you prove what the terms actually were when both parties walked away with different understandings?”

Without a written agreement, disputes often come down to:

• Conflicting memories

• Emails sent after the fact

• What each party thought was agreed

And that’s when costs escalate quickly.

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Why Business Owners Get Caught Out

Many business owners assume contracts are just paperwork — something to sign so the job can start. In practice, contracts allocate risk, responsibility, and exit rights.

Sam regularly sees:

• Contractors signing subcontracts that bind them to head contracts they’ve never seen

• Business partners agreeing “in principle” without thinking about future fallout

• Parties focusing on price but ignoring termination, disputes, or insolvency clauses

People are often excited to get the deal done. But excitement is rarely a substitute for clarity.

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“The Law Is Not an Answer for Stupidity”

One of Sam’s most direct — and honest — observations is this:

“The law is not an answer for stupidity. If you enter into a bad agreement, there’s only so much anyone can do.”
— Sam Cohen, Principal Lawyer

Courts won’t fix a contract simply because it turned out to be a bad deal. If the terms are clear and lawful, you may be stuck with them — even if they’re unfair in hindsight.

That’s why prevention matters.

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What a Lawyer Actually Adds to a Contract

A lawyer isn’t just there to make a contract longer or more complicated. The real value is in identifying what hasn’t been considered.

A properly drafted or reviewed contract can:

• Accurately reflect what both parties intend

• Allocate risk in a commercially realistic way

• Include dispute resolution mechanisms (before things escalate)

• Provide clear termination rights

• Address “what if” scenarios most people overlook

This is particularly important in partnerships and business agreements.

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Write Agreements When Everyone’s “In Love”

Sam uses a simple analogy that resonates strongly with business owners:

“Agreements should be done when everybody’s in love.”
— Sam Cohen

At the start of a business relationship, people are cooperative and optimistic. That’s the best time to agree on:

• Exit strategies

• Buy-out rights

• What happens if someone becomes insolvent

• What happens if personal circumstances change

Trying to negotiate these terms once tensions rise is far harder — and often impossible.

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Cost vs Benefit: The Question Every Business Owner Should Ask

One of the biggest misconceptions is that legal disputes are always worth pursuing.

“They’re not,” Sam says. “It often comes down to cost versus benefit.”

Even strong cases can:

• Take years

• Cost tens of thousands of dollars

• Produce uncertain outcomes

That’s why Cohen Legal focuses heavily on avoiding disputes through clear contracts, rather than relying on courts to fix problems later.

You can learn more about Cohen Legal’s approach to disputes and prevention through our Civil and Commercial Litigation services:

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Australian Standards vs Bespoke Contracts

Not all contracts are created equal.

• Australian Standards contracts are familiar and easier to review because the risk points are known

• Bespoke contracts require far more time, especially when they cross-reference other documents

For a multimillion-dollar agreement, a few thousand dollars spent on review can be a sensible commercial decision — particularly compared to the cost of litigation later.

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So, Do You Need a Lawyer to Write a Contract?

You may not need a lawyer for every agreement. But if a contract:

• Involves significant money

• Commits your business long-term

• Creates personal or partnership risk

• Is something you’d struggle to explain clearly in plain English

…then legal advice is usually worthwhile.

As Sam often tells clients, disputes aren’t always avoidable — but many are preventable.

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A Softer Way Forward

If you’re unsure whether a contract needs legal input, a short review can often identify major risks early — before they turn into disputes.

Getting clarity upfront gives business owners confidence to move forward, knowing they understand what they’re signing and why.

If you’d like guidance on contracts, partnerships, or risk management, Cohen Legal works with business owners across North Queensland to provide practical, plain-English advice.  Talk to us today.

👉 Learn more about our commercial and business services.

Disclaimer: This article provides general information only and does not constitute legal advice. You should obtain advice specific to your circumstances before making any decisions.