Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This type of interdependence among businesses is standard in most industries. The good news is that, generally, businesses can depend on one another to meet

image text in transcribed
This type of interdependence among businesses is standard in most industries. The good news is that, generally, businesses can depend on one another to meet their contractual obligations, because businesses know (or should know that if they fail to meet their contractual obligations they may be sued for breach of contract, which can be very expensive, time-consuming, and stressful and . they may quickly obtain a bad reputation in the business community, resulting in the loss of future business opportunities Businesses that breach their contracts are likely to find themselves on the losing end of a lawsuit if another party makes a claim against them. Because of the importance of the integrity of business transactions to the business community and the economy as a whole, courts generally rule against parties found to be in breach of their contractual obligations. The Importance of Contract Law for Business Success Although most business owners and operators understand the importance of keep ing their contractual promises--and do so it is also helpful for every individual working in business to know about contract law, Why? Contracts can clarify your business dealings A contract, if carefully drafted and properly understood, can smooth business dealings by informing both you and the other party of your rights and obligations. Elimination of confu- sion will benefit both of you by facilitating the efficient performance of your agreement. Contracts can prevent unexpected and undesirable results. An understanding of frequently used contractual terms can help you avoid surprises. Familiarity with the legal impact of these terms creates certainty about your contracts outcome. Legal terms that are common in contracts are discussed later in this chapter under the heading "Reading the Fine Print: Typical Terms in Business Contracts. Contracts can provide for a dispute resolution process. Parties can agree be- forehand on a process for resolving disputes and include this in the contract Knowledge of contract law allows you to consider a range of dispute-resolving solutions and mechanisms before any dispute arises. This can increase the chances of maintaining a good working relationship, even in the event of a challenging development. It can also reduce the expense associated with a contractual dispute. Contract law governs disputes. Despite your best intentions, and those of the other party, contractual disputes can still arise. It is important to under stand the rules that have been applied in the past in order to predict the outcome that is likely, in the event that your business contract dispute needs formal resolution

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental Accounting

Authors: Steven M. Bragg

2022nd Edition

1642210781, 978-1642210781

More Books

Students also viewed these Accounting questions

Question

Describe the characteristics of a 360-degree performance appraisal.

Answered: 1 week ago