Business depends on all kinds of relationships

Assignment Help Other Subject
Reference no: EM131045402


According to Burns of Praxis Legal Solutions (2014), if you run a business, your business depends on all kinds of relationships: With customers or clients; with employees; with vendors of goods and services; with lenders and landlords, just to name a few. Each party to a business relationship brings to it a set of expectations with respect to what he or she will give and get. A contract is a useful tool for describing and defining the expectations of each party to a business relationship. Why is this important?

Establishing a measure of certainty

Think of a business relationship as a house. A contract is the blueprint for building that house; a reference for its operation and maintenance. A contract captures the rights and obligations of each party; the terms and conditions of their respective performance; and what each party will gain from the relationship. A contract articulates remedies in the event that one or the other party fails to perform as expected/required. By clearly defining the terms and conditions of a business relationship and the consequences of a failure to perform in accordance with those terms and conditions, a contract provides a measure of certainty, and can quantify the upside and downside inherent in a business relationship.

It's all in the details

To understand how a contract works, we can look at a lease, which is one kind of contract. If I want to lease office or warehouse space, I first want to quantify exactly how much space I want to pay for, and how much I will pay. I want to be specific about the term of the lease, and what I may or may not do to the leased space in terms of renovations or alterations. I want to know whether and when the landlord can raise the rent. Are utilities included? Who pays the taxes? Is the building insured? Will that insurance cover my space? What happens if I don't pay the rent? Or if the roof leaks and the landlord delays or fails to repair it and my property is damaged?

Reference no: EM131045402

Aspects most important to the current situation

This theory asserts that managers make decisions based on the situation at hand rather than a "one size fits all" method. A manager takes appropriate action based on aspects

Greek religion and philosophy

We often say and teach that Greek spirit and originality is the basis of the West's culture. How did Greek religion and philosophy reflect and/or influence, the values and p

Bedouin tribal society populating the arabian peninsula

Islam began as a religion of city dwellers but grew to include the loosely organized Bedouin tribal society populating the Arabian Peninsula. Trace the rise of Islam in its

Difference between shite and sunni muslims

Provide an example of a theocratic state, and explain what this means. What is the difference between Shite and Sunni Muslims? Which is the majority in the Middle East? In I

Black death plague

Any suggestions on info for a short paper (300 words)on the Black Death Plague? "We have seen how events such as this within a culture can have a tremendous effect on that cul

Paper on the black death plague

Any suggestions on info for a short paper on the Black Death Plague? "We have seen how events such as this within a culture can have a tremendous effect on that culture."...

Certain plants growing in the area

About 1000 year ago, during a voyage from Norway to Greenland, Viking Leif Ericson was blown off course and unexpectedly discovered North America. He named it after certain

How do law enforcement organizations regulate use of media

How do law enforcement organizations regulate the use of social media? Just about every major law enforcement organization has a Facebook account associated with the organiz


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd