It was worked out without benefit of a lawyer, and we considered it merely a written explanation of an understanding rather than a legal document. It is our feeling that, if a client decided he no longer wanted to work with us, we would not want to hold him to a contract, and vice versa. No contract can control the quality of a creative service such as industrial design. We have never tried to tie anything down legally, and we have never had a lawsuit.
ritz replies...
I bet we would all be surprised how accommodating people on the other side of a contract can be if they feel everyone was honest, authentic, and tried their hardest. Sometimes things just don't work out and, in those cases, a contract doesn't make life better for anyone. But it still helps keep everyone on the same level... Which is nice.