In Rwanda’s growing economy, there is increasing awareness of the importance of written contracts. Businesses are becoming more formal, partnerships more structured, and transactions more complex. Today, many entrepreneurs understand that relying solely on verbal agreements or trust-based arrangements can expose them to unnecessary risk. However, an equally important reality is often overlooked. For many small businesses, signing a contract feels like crossing the finish line. Once it is signed, stamped, and filed, there is a sense of relief; “Now we are protected.” In reality, though, that signature is only the beginning of a business relationship, not the end of the legal process. Most business disputes do not arise because there was no contract at all. They arise because what followed the signing was poorly recorded, loosely handled, or left to memory. Consider a few common scenarios. A supplier delivers goods but does not insist on signed delivery notes. A contractor performs extra work after a verbal request but never confirms it in writing. Deadlines are extended through phone calls or WhatsApp messages that later disappear. Payments are made in instalments without clear references or receipts. At the time, these shortcuts feel efficient. Everyone seems to understand each other. Trust exists, and business moves fast. Problems surface months later when something goes wrong: a payment is disputed, goods are said to be incomplete, or one party denies ever approving a change. A contract sets out the framework of the relationship—price, scope, timelines, and responsibilities. But it does not automatically record what actually happens on the ground. Business relationships are lived through deliveries, emails, invoices, receipts, approvals and confirmations. If these are not documented, the contract alone cannot tell the full story. When disputes reach lawyers, courts, or arbitrators, the question rarely stops on “Was there a contract?” Rather, the central question is often “What evidence shows how the contract was performed?” Ironically, many businesses only realize the importance of proper documentation after a problem has already escalated, when fixing it becomes far more expensive and disruptive. Many business owners underestimate the importance of simple records, yet small documents often decide the outcome of disputes. A signed delivery note can prove that goods were received in full. An invoice can show what was charged and when. A short email can prove that a deadline was extended or a variation approved. A receipt can confirm payment. Without these documents, even honest businesses can lose claims they should have won, not because they were wrong, but because they could not prove they were right. There is a common belief that asking for written confirmation shows mistrust. In practice, the opposite is true: clear documentation protects relationships, prevents misunderstandings and removes the need to rely on memory or assumptions. It prevents small issues from becoming major conflicts, and allows business partners to focus on growth instead of arguments about the past. Record-keeping is not about being difficult or distrustful. It is about being clear and professional. Poor documentation does more than complicating disputes. It also holds back growth. Businesses with weak records often struggle to access bank loans, attract investors, pass audits or due diligence, or scale operations confidently. As a business grows, informal practices that once worked begin to create confusion. Staff change, memories fade, and verbal understandings disappear. Good records create continuity and credibility. The good news is that effective documentation does not require complex systems or excessive paperwork. It starts with simple habits: ensuring contracts are clear and updated when things change; signing and keeping delivery notes for goods received; issuing and retaining invoices and receipts consistently; confirming changes or extensions in writing; and keeping records of business-related messages and emails. These habits cost little and they save businesses from expensive problems later. Rwanda’s economic growth has brought new opportunities, but also higher expectations. Businesses are increasingly dealing with banks, large clients, and regional partners. In this environment, informal practices that once seemed efficient can become liabilities. Businesses that treat documentation as part of daily operations—not an afterthought—are better positioned to grow and withstand challenges. To put it simply, signing a contract is important. But it is not enough. Gad Kwizera is an advocate at Rwanda Bar Association.
