Cool. Practice . hehe
Anyways, best it to tell ur lawyer draft out a legal contract.
Cause ur friend may wanna challenge the contract n get his lawyer
to look at it, hence takes time.. and money.lol. Just make sure u
add 'Subject to solicitor's approval' as one of the
conditionals.
Penalty clause can be drafted in to weight the intention of both
parties to the contract.
I am unsure if Sg has any remedies under statute that overrides
common law doctrines specifically for breach of contract,
repudiation , void and illegal contracts. But i am sure if all
falls apart, somewhere somehow, equity will step in.
Then there will be assignment of contractual rights and
liabilities.
But anyways contract can be varied by agreements between the
parties. Can add , omit or alter terms later on.
Dont see any wrong to take measures to protect yourself from
liabilities and also getting 'set up'. Can never be too
careful.
Hope it helps. Spend little $ $ $. And you'll be alrite. xD
Correct me if i am wrong.