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# Overheard : Contracts are about disagreements
- URL: https://kudithipudi.org/overheard-contracts-are-about-disagreements/
- Published: 2026-09-30T23:06:17.000Z
- Updated: 2026-09-30T23:06:17.000Z
- Description: Gary Keller calls contracts "disagreements," because the only time you reread one is when something has gone wrong. So write them to handle disputes, not to record moments of agreement. It's Charlie Munger's favorite advice in action: "Invert, always invert."
- Author: Vinay Kudithipudi
- Tags: OverHeard, life, Management

A great observation by [Gary Keller](https://en.wikipedia.org/wiki/Gary%5FW.%5FKeller?ref=kudithipudi.org) on contracts. People usually associate contracts with agreements. In a [conversation](https://tim.blog/2019/12/18/gary-keller-transcript/?ref=kudithipudi.org) with [Tim Ferriss](https://tim.blog/?ref=kudithipudi.org) he said

> Your agreements between you and your partners—I call them **disagreements**—because the only time you’re going to read it is when you disagree.....and that really informs the way you look at a document when you call it a disagreement. **Because it should be there to deal with things when you disagree**. Otherwise, if you agree, you’d never read the document; you’d never go back to it.

It is an interesting way to look at how you approach the content and structure of the contract when you know that it is a way to agree on disagreements. Reminds me of [Charlie Munger's](https://en.wikipedia.org/wiki/Charlie%5FMunger?ref=kudithipudi.org) favorite quote "Invert, Always Invert"