Original Copies of Contracts: Who Keeps Them and Why It Matters

Contracts are essential tools for clarifying agreements and ensuring mutual responsibilities between parties. One major consideration in contract management is the distribution and maintenance of original copies. This article will explore the significance of the original copies of contracts and provide guidance on who should keep them to prevent disputes and ensure legal compliance.

Importance of Original Copies

Original copies of contracts are crucial for several reasons. They serve as legal evidence of the agreement, act as a reference document, and provide a basis for enforcing or disputing the terms of the agreement. Keeping original copies in a secure and accessible manner helps avoid misunderstandings and ensures that all parties have a verifiable record of the signed agreement.

Who Should Keep the Original Copies?

Each party involved in a contract should receive an original copy to maintain their own records. Here’s a breakdown of how original copies are typically handled in different scenarios:

For Individuals

In a two-party agreement, both parties should be given an original copy of the contract. It's the responsibility of the individual to ensure that they retain their original copy for future reference. For instance, if you sign a rental agreement with a landlord, both you and the landlord should take one original copy each.

For Corporations

Corporations often provide their clients with a copy of the contract while keeping the original for their records and legal protection. This practice is common in business contracts, ensuring that the company has a back-up copy to protect against potential legal disputes. Corporate records are essential for internal audits and compliance purposes.

Financed Contracts

In financed contracts, the loan agreement is typically sent to the lender. However, if the contract is not financed, the dealership will store the original copies for a period of 10 years before destroying them. This ensures that the dealership has a security measure in place while also maintaining a balance of responsibility.

Legal and Court-Involving Contracts

Some contracts, such as wills or certain legal documents, may have duplicate original copies. These are signed and attested by a notary to ensure their validity. When legal documents are filed with the court, copies can be obtained with the proper stamps and signatures to ensure their official status.

Ensuring Accessible Copies

While each party should have an original copy, it's also important to consider having accessible copies for situations where the original may be lost or damaged. One way to achieve this is to create additional original copies by having the parties sign multiple copies of the document. This practice is common in large business contracts and agreements involving multiple parties.

Conclusion

The distribution and retention of original copies of contracts are fundamental to effective contract management, legal compliance, and dispute resolution. By clearly defining who should keep the original copies and ensuring access to these documents, parties can avoid conflicts and ensure that their agreements are properly documented and enforceable.