Advantages:

• Provide legal protection by outlining rights and obligations, and offering a framework for dispute resolution.
• Ensure transparency, preventing misunderstandings, and ensuring both parties are aligned.
• Demonstrate professionalism and commitment to transparency, building trust with clients or patients.
• Enhance professionalism, showing preparedness for various scenarios.
• Clarify payment terms, avoiding confusion regarding fees, schedules, and penalties.
• Include termination clauses, providing a clear exit strategy and reducing potential conflicts.

Disadvantages:

• Lack of formal terms and conditions increases legal risk and the potential for costly litigation.
• Absence of explicit terms may lead to inflated client expectations, misunderstandings, and disputes.
• Without predefined dispute resolution procedures, conflicts become harder to resolve, increasing the likelihood of legal action.
• Increased susceptibility to monetary losses and legal claims due to misunderstandings over costs, services, and responsibilities.
• Higher likelihood of payment disputes without clearly defined terms, leading to financial instability.
• Difficulty in terminating client relationships without clear termination clauses, potentially causing more disputes and reputational damage.