BTF1010 Lecture Notes - Lecture 5: Relational Contract, Iceberg, Institute For Operations Research And The Management Sciences
Document Summary
We have reached the end stage of the contract journey . But note: in fact most contractual disputes are settled (resolved) well before they go to court. Time taken, expense involved, uncertainty of result, stressful court proceedings. Bad for long-term business relationships ( you don t do business with people who sue you ) Parties can negotiate a better outcome through compromise or mediation. So what are we examing in this topic is the very tip of contractual dispute resolution iceberg. First we check how a contract can be brought to an end - termination - and second we look at the remedies available to the innocent party where there has been a breach of contract. Basic rule: parties must perform fully and exactly or there is a breach. To soften the effect of this rule courts have developed three concepts: the concept of the entire and the divisible concepts: