Answer to Question #231472 in Management for disss

Question

Journal: Contracts and Trust

If submitted, your response can be viewed by your instructor.

Given the discussed advantages and disadvantages of contracts, describe the kinds of situations in which a contract is important and the kinds of situations in which some other means of the agreement would be more appropriate.

Answer 1

A contract is an agreement between two or more parties in order to carry out tasks and it is enforced by law.

Situations where contract are useful include

• For the purpose of commitment where contracts help to hold the original agreement for the both parties.
• To help in preventing conflicts and risk mitigation
• It helps the employees and the whole organization to maintain compliance.
• Where contract is a collaboration and a communication tool.

Other means would be appropriate where:

• Employees are employed and dismissed at will without notice
• There is no expectations of ongoing work
• The work is award and agreement free
• There is no obligation to accept offers at work.