Question

(Business Law)

Discuss the importance of having contracts in today's market economy.

Answer 1

Written contracts provide a legal document stating the terms and conditions as well as the compensation involved. It gives a clear picture of the requirements to be fulfilled by both parties and is extremely useful in times of dispute. The contracts are a written proof and enable both parties to understand their roles in the contract. They are legally enforceable and safeguard the interests of both parties. They limit the obligations of the parties and save time and cost of disputes.