Question

1What is contract management? And why is contract management so important?

Why are contract agreements so important?

What is the main function of a Contract?

Who and What does the Contract protect?

Answer 1

Contract management refers to the management of contracts made among customers, merchants, partners, or employees. The individuals involved in contract management required to negotiate, support, and manage contracts are expensive to train and require specialized skills and knowledge.

Contract agreements are important as it provides a written report that outlines the complete understanding of the relationship and scope of the work so that there will not be any misunderstandings among the parties to the contract. The agreement specifies precisely the rights and obligations and is binding and legally enforceable in the court of law.

The main function of the contract is to legally record the transactions between individuals or business organizations. It exists when the two independent parties are gaining value and want to formalize the terms of their contract.

When something goes wrong or against the contract, a written contract safeguards both the parties. If one party to the contract thinks that the other party has broken the contract, the party being harmed can sue the other party who has breached the contract.