Recognizing Contract Risk and Opportunities Essay
• Contract: an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration.
• Breach of contract: failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act which shows the party will not complete …show more content…
Contract preparation and review is critical in both risk and reward. Management must understand fully what it is they want or need out of the agreement well before an actual contract is drawn. The review process should start with addressing any potentially ambiguous terms. Article 2 of the Uniform Commercial Code requires definition of ambiguous terms. Ignorance is not an argument. The Supreme Court held that a contract may not be cancelled due to later dispute over meaning of key term (Go2Net v. C I Host, Inc., 2003). Opportunities arise when you take the chance to define those ambiguous terms using your light versus the judges.
Contract performance is essential