Write whether or not each situation would lengthen or shorten a contract, ceteris paribus. a) a...

Write whether or not each situation would lengthen or shorten a contract, ceteris paribus.

a) a highly complex contracting environment with high legal fees

b) an increased need for specialized machinery inputs

c) a move from highly specialized inputs to more basic inputs

Solutions

Expert Solution

Answer A) A highly complex contracting environment with high legal fees will lengthen the contract as there will be many new additions of policies in the contract due to its complexity as well as to make sure nothing goes wrong there will be mention of all the important points and scenarios in the contract and hence this situation would lengthen the whole contract.

B) An increased need for specialized machinery inputs will also lengthen the contract as there will be additions regarding classes and policy for specialized machinery in the contract as well as the specification of the machinery will also be specified along with the delivery instructions and the maintenance services for the machinery etc. so this situation will lengthen the contract.

C) A move from highly specialized inputs to more basic inputs will shorten the contract as there will be far lesser clauses will present in the contract as the contract formed will be with regards to new basic inputs hence it will shorten the contract.

Rahul Sunny answered 1 month ago

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