Don't worry about contracts. When doing residentials, keep it simple. Buying accounts is always a scary event to begin with for both the buyer as well as the customers. If he's been doing these customers for 3 years without a problem and no contract, why mess with it. If you come in after a few weeks\months and all of a sudden ask people for one, you'll scare half them off. Guys put too much emphasis on contracts. They can be broken in 30 days by either party by law, so does 30 days really matter that much. We do about 130 residentials a week, none of them have a contact and we have been servicing them for over 6 years. We have also bought out an existing landscape operation quite a few years back and none of the 50 clients had a contract. We lost not one of them in the interim. Just continue the reliable and freindly service and you'll be fine. The price on the deal is a good one as well. Good luck.