Standard forms of Contract - Essay Example

Section/# The Importance and Relevance of Standard Form Contracts: A Business Prospectus Within any businessventure, the need and requirement to fully understand the details and nuances of what is being engaged is of paramount importance to the project manager and teams that will be engaging with whatever tasks or metrics are involved. As a direct result of his need, the past several decades have illustrated an increased level of focus on the evolution and development of standard forms of contracts within the products.

Initially, business leaders came to understand that contracts serve in helping to define and understand the way in which workflow can be carried out in the overall likelihood of success that could be realized. However, the implementation and appreciation for contracts alone was only the initial stage of this process. Ultimately, standard forms of contracts came to be developed; both as a way of representing a level of uniformity throughout the business world and as a means of rapidly allowing contracts to be drafted and engaged.

With regard to this, the following analysis will be concentric upon discussing the need for the development of standard forms of contracts and products. It is the further hope of this particular author that the reader will be able to gain an understanding for the way in which current contractual obligations impact on businesses. Moreover, the manner through which a broad-based appreciation for these “standard contracts” and how they are exhibited throughout many layers of the business world will also be discussed.

Perhaps the first and most important need for standard contracts has to do with the requirement to represent details to the stakeholders. With a standard contract format, the details of the product are represented within its own section. This will allow the reviewers to rapidly understand metrics and milestones through which these details can be accomplished. Moreover, the representation of fact that exists within these standard forms of contracts allows for stakeholders to gain a firm level of estimation/understanding concerning the overall cost that such a means-based approach might engage (Santucci, 2011).

Although it should not be understood that a contract itself serves as a firm estimation of cost, it can provide stakeholders with a reasonable estimation of the overall level of time, personnel, or material that would be required as a function of composting a particular task. Beyond merely a determination of the amount of resources or time that might be required with respect to any particular project, an additional complement and necessary inclusion of the standard format that has come to be represented with respect to contracts has to do with the limitation on obligations.

Ultimately, contracts themselves came to be utilized as a means of defining what was expected and restricting the resources and time towards a specific goal. In much the same way, the limitations of expectation and obligations outline specific duties that might otherwise be far too general. In much the same way, the limitation on obligations cost to serve as a further causal the way in which the outline for a particular work project or set of projects might be engaged (Korobkin, 2013). Another direct need with respect to the standard form of contract has to do with the presence of two unique sections that are invariably included.

The first of these has to do with confidentiality (Marotta-Wurgler & Taylor, 2013). Ultimately, the legal need and desire to retain a confidentiality statement within a contract to protecting business interests, and, and overall level of performance within a given market. Ultimately, at a juncture in which individual or a corporation engages with another individual or corporation, it is expected that a confidentiality agreement will be present. As a means of protecting interests and guaranteeing that the legal constraints of confidentiality provide a framework of integration, this has come to be an absolutely adorable, the way in which business has come to expect contracts to represent their best interests (Green, 2013).

Another direct need with respect to the standard contract that has come to be represented is with regard to a dispute resolution mechanism for roadmap through which disputes can be resolved prior to further legal action or additional negative ramifications taking place. The underlying reason for this aspect of the standard contract being represented has to do with the fact that a great deal of efficiency and cooperation has been lost over the years as a result of the fact that companies invariably found themselves at on one another due to the fact that anticipation of potential disputes and/or a roadmap/mechanism through which they can be resolved were not included in the initial contract specifies scope of work.

Accordingly, my including a student mechanism, corporations and individuals have their best interests maximize through a process in which this understanding in disputes can readily be ameliorated merely by following the mechanism that has been supply within the standard form of the contract. As can be seen from the preceding analysis, the evolution of the standard form of contract has ultimately been a function of the direct need that exists within the business world. Furthermore, as companies to engage in more and more iterations with more and more partners, the expectation and requirement for a standard form of contract allows for all stakeholders involved to readily analyze and document and determine what aspects are included and what sections (Braithwaite, 2012).

Ultimately, the greatest benefit that is represented with respect to the standard form contract, is with regard to the expectation that has been discussed. Further, the ability to quickly analyze the proposed business engagement and determine whether or not was beneficial long-term interests of the parties involved, serves as a further benefit that has encouraged the development and evolution of the standard form of the contract. Finally, as the reader can note from the information that has been presented, the standard form of the contract is not a concrete document.

Although there will always be variations with regard to the contents, it is further expected that the shifts and demands of the external business environment will continue to shift the means by which this business tool is represented in the near future; as it responds to the stimuli of business needs. Bibliography Braithwaite, JP 2012, Standard Form Contracts as Transnational Law: Evidence from the Derivatives Markets, Modern Law Review, 75, 5, pp. 779-805, Academic Search Complete, EBSCOhost, viewed 13 May 2014.

Green, JP 2013, THE CONSUMER-REDISTRIBUTIVE STANCE: A PERSPECTIVE ON RESTORING BALANCE TO TRANSACTIONS INVOLVING CONSUMER STANDARD-FORM CONTRACTS, Akron Law Review, 46, 2, pp. 551-598, Academic Search Complete, EBSCOhost, viewed 13 May 2014. Korobkin, R 2013, The Borat Problem in Negotiation: Fraud, Assent, and the Behavioral Law and Economics of Standard Form Contracts, California Law Review, 101, 1, pp. 51-106, Academic Search Complete, EBSCOhost, viewed 13 May 2014. Marotta-Wurgler, F, & Taylor, R 2013, SET IN STONE?

CHANGE AND INNOVATION IN CONSUMER STANDARD-FORM CONTRACTS, New York University Law Review, 88, 1, pp. 240-285, Academic Search Complete, EBSCOhost, viewed 13 May 2014. Santucci, P 2011, SUBSTANTIVE FAIRNESS IN AUSTRALIAN STANDARD FORM CONSUMER CONTRACTS: LESSONS FROM THE UK EXPERIENCE, Oxford University Commonwealth Law Journal, 11, 2, pp. 171-195, Academic Search Complete, EBSCOhost, viewed 13 May 2014.