LAW 122 Lecture Notes - Lecture 14: Contract
1 Oct 2017
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Document Summary
They allow a business to operate more quickly and more efficiently because they obviate the need to repeatedly negotiate contracts that deal with the same subject matter. Furthermore, they provide a form of risk management. Once a business has found a form that avoids legal problems, it can use that form repeatedly in the future. However, the use of standard forms itself can create a risk management problem. A battle of the forms occurs when each party claims to have entered into a contract on the basis of its own standard form document and when those documents actually differ. The danger is heightened when the parties unthinkingly rely upon their standard form documents and simply assume that everything will proceed smoothly. From a risk management perspective, it is critically important for the parties to carefully read all of the documents that pass between them.
