Question

Fluid negotiation

Discussion Topic

Why does the UCC provide for fluidity in contract negotation? In today's business environment why is it important to establish rules regarding when a counter offer, or modification of a contract is binding? Why is it important to have rules regarding when title and risk of loss pass between parties?

Answer 1

Answer:

Fluid Negotiation:

The easy movement of something in exchange of money or movement of a piece of paper in exchange of money is known as negotiation. And the negotiation done between two parties without any external or internal pressure is known as fluid negotiation.

Why does UCC provide for fluidity in contract negotiation?

UCC(uniform commercial code ) includes business laws and rules followed by many states in U.S. which is based on 9 articles mostly of banking and loans.

UCC provides fluidity in negotiation contract because to be hold the good connection between the merchant and sales person so that they can easily negotiate the money for the goods to be supplied . There are two sets of rules one is for all and the other is for the merchants that is nothing but before the contract is signed both the merchant and the sales person or buyer should agree and accept the negotiable money after offering the contract.

Importance of establishing rules in today's business environment.

It is very important in today's business important to set rules for counter offering and contract binding because of the increase in demand and supply of the goods and services due to which many fraudulants may happen. It is important to set some rules while counter offering before it binds the contract because the offeree will change his mind and rejects the offer after contract binding. So to be safe from such frauds one should be prepared with rules such as no backing off after the contract is signed in worst cases of it is rejected later there should be some damage or rejection amount should be fixed while counter offering and most importantly the contract should be communicated well.

Importance of rules regarding title and risk of loss between parties.

It is very important for both buyer and seller or merchant to communicate or get aware about the rules and regulations for the title and the risk of loss. That means a buyer cannot ask for the refund for the damages or loss of good occurred while transferring the goods after the agreement and acceptance of the contract and transfer of the title to buyer from the merchant is done . So before signing any contract a merchant and buyer should communicate well regarding the rules of the title and risk of loss so that both will not face any consequences after signing the contract.