Question

In: Finance

Important purposes of the law, in a business context, include providing reliability and promoting good-faith among...

Important purposes of the law, in a business context, include providing reliability and promoting good-faith among merchants.

Please discuss why these purposes are important to business.

Solutions

Expert Solution

One of the most import parts of business law is having a strong contract. The business law contract formalizes the agreement between two parties to prevent misunderstanding about key terms in the agreement.

It’s key for both parties to have a valid and enforceable contract in case the contract needs to be enforced in court. Contracts can be oral or in writing. An oral contract is any agreement that’s not written but certain types of agreements are required to be written such as agreement to buy or sell real estate or land.

A written contract plays a vital role in any business transaction. Apart from making the agreement between concerned parties legally binding, contracts can also serve as future references, part of the business’ policies, as well serve as proof in the event of misunderstandings, complaints or disputes needing litigation proceedings.

One of the ultimate benefits of having written contracts in business transactions is the opportunity to agree to confidentiality and non-disclosure provisions protecting sensitive information. As part of the agreement, the concerned parties are legally bound to hold in secrecy the transactions involved and the information shared among them, and the party that violates this confidentiality agreement would be held liable under the agreement.

A written contract is used as an official record establishing what the parties involved have agreed on. For instance, it provides guidance on the level of authority given to owners or managers in the business, completion date of any work contracted to a service provider, payment of work completed, or simply stating the terms on who or when to terminate a contract.


Related Solutions

Important purposes of the law, in a business context, include providing reliability and promoting good-faith among...
Important purposes of the law, in a business context, include providing reliability and promoting good-faith among merchants. Please discuss why these purposes are important to business.
(in business law ) Is good faith part of Australian contract law? Discuss with reference to...
(in business law ) Is good faith part of Australian contract law? Discuss with reference to decided cases and legislation?(at least 150 words)
Why is agency law especially important in the business and government context? What are the five...
Why is agency law especially important in the business and government context? What are the five types of agents? What distinguishes an employee from an independent contractor? Why do employers frequently try to pass off employees as independent contractors?
What is Reliability? Why is it important in the context of HR selection? Explain in detail...
What is Reliability? Why is it important in the context of HR selection? Explain in detail your analysis.
Among the challenges confronting the international trading system are providing global health insurance and promoting free...
Among the challenges confronting the international trading system are providing global health insurance and promoting free education for all workers. - True - False
Define “Capital Maintenance” in the context of business law
Define “Capital Maintenance” in the context of business law
Differentiate between good faith and commercial reasonableness. Discuss the need for such terms in law. What...
Differentiate between good faith and commercial reasonableness. Discuss the need for such terms in law. What are prepayment and acceleration clauses? How do these clauses help the borrower?
Why is transparency; information quality/reliability and good governance important for corporations and for the financial markets...
Why is transparency; information quality/reliability and good governance important for corporations and for the financial markets ? Discuss in the context of some governments’ ability to raise credit through bond issues to combat the COVID crisis at zero or even negative interest rates? What is the distinction between a stock and a flow variable? How does the stock & flow variable distinction impact the reporting and organization of financial information? Financial ratios derived from accounts are unit free. How will...
Malaysian Business law Mariam, Devi and Ah Moi formed a consultancy business in March 2020 providing...
Malaysian Business law Mariam, Devi and Ah Moi formed a consultancy business in March 2020 providing financial advice in view of Covid-19. They have agreed to share their profits and losses on a ratio of 30:30:40 respectively. However, Ah Moi said that since she has no knowledge on financial advice, she will not be involved in the day to day running of the consultancy business. Hence, most of the financial advisory work was done by Mariam and Devi. Recently, Mariam...
Explain why commenting code is important. Include an example of a good comment and of a...
Explain why commenting code is important. Include an example of a good comment and of a bad comment. This should be done with matlab in mind.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT