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The Importance of Contract Law for Business Success Although most business owners and operators understand the importance of keep- ing their contractual promises-and do so-it is also helpful for every individual working in business to know about contract law. Why? Contracts can clarify your business dealings. A contract, if carefully drafted and properly understood, can smooth business dealings by informing both you and the other party of your rights and obligations. Elimination of confu- sion will benefit both of you by facilitating the efficient performance of your agreement. Contracts can prevent unexpected and undesirable results. An understanding of frequently used contractual terms can help you avoid surprises. Familiarity with the legal impact of these terms creates certainty about your contract's outcome. Legal terms that are common in contracts are discussed later in this chapter under the heading Reading the Fine Print: Typical Terms in Business Contracts." Contracts can provide for a dispute resolution process. Parties can agree be- forehand on a process for resolving disputes and include this in the contract. Knowledge of contract law allows you to consider a range of dispute-resolving solutions and mechanisms before any dispute arises. This can increase the chances of maintaining a good working relationship, even in the event of a challenging development. It can also reduce the expense associated with a contractual dispute. Contract law governs disputes. Despite your best intentions, and those of the other party, contractual disputes can still arise. It is important to under- stand the rules that have been applied in the past in order to predict the outcome that is likely, in the event that your business contract dispute needs formal resolution. The Importance of Contract Law for Business Success Although most business owners and operators understand the importance of keep- ing their contractual promises-and do so-it is also helpful for every individual working in business to know about contract law. Why? Contracts can clarify your business dealings. A contract, if carefully drafted and properly understood, can smooth business dealings by informing both you and the other party of your rights and obligations. Elimination of confu- sion will benefit both of you by facilitating the efficient performance of your agreement. Contracts can prevent unexpected and undesirable results. An understanding of frequently used contractual terms can help you avoid surprises. Familiarity with the legal impact of these terms creates certainty about your contract's outcome. Legal terms that are common in contracts are discussed later in this chapter under the heading Reading the Fine Print: Typical Terms in Business Contracts." Contracts can provide for a dispute resolution process. Parties can agree be- forehand on a process for resolving disputes and include this in the contract. Knowledge of contract law allows you to consider a range of dispute-resolving solutions and mechanisms before any dispute arises. This can increase the chances of maintaining a good working relationship, even in the event of a challenging development. It can also reduce the expense associated with a contractual dispute. Contract law governs disputes. Despite your best intentions, and those of the other party, contractual disputes can still arise. It is important to under- stand the rules that have been applied in the past in order to predict the outcome that is likely, in the event that your business contract dispute needs formal resolution

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