All agreements are not contracts. So just agreeing something could merely leave a party with some form of moral obligation. A contract suggests that both parties commit to enforcing the agreement by law. This includes the agreed recourse if parties do not perform. When we write these details on paper, you get your typical "paper" contract.

The decision to record a buying contract on paper is based on the nature of the "deal". Think of this practical example:

You buy all your office supplies from a company called ABA. Over the last few months ABA did not perform that well. It is now time to act. I think it is safe to asume that we are not going to take legal action. At worst, w'll just move to an alternate supplier (if we do not already have a second one). To have a lengthy contract to cover this deal serves no purpose. A simple price agreement with an agreed billing processes and other practical arrangements should suffice. (In these cases you should minute a meeting in which you make it clear to the supplier that you do not commit to volumes and that they do not have exclusivity)

For a commodity that is essential for the survival of your organisation you will do one of those lengthy written contracts. You will include generic terms, detailed specifications and MOST IMPORTANTLY SERVICE LEVEL OBJECTIVES. (SLA'S).

You need to record secure written contracts for commodities of strategic importance. You do not need written contracts for non critical items. I am often shocked to see that organisations (Very large ones at that) have detailed contracts in place for office supplies and travel, yet their strategic commodities are not covered under written contracts!

In short then. Do not just compile contracts for the sake of doing it. Focus on top quality contracts for those commodities that will influence the survival of your organisation. If you have time left, pay attention to the "lesser" commodities.

Remeber though. Many institutions have a blanket rule that all commodities must be under written contract. (Auditors will even give you a working over if you do not comply!) Try and influence the rule, but follow it to the letter untill it changes!