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1.1 Running a business means working with contracts

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Business people are required to work with contracts all the time. From issuing purchase orders to dealing with customer complaints; from filling out order forms to responding to landlord notices; from agreeing with suppliers to disagreeing with competitors; from hiring to firing; and from suing to settling; contracts pervade every aspect of what you, as a business owner, operator, or manager do. If you’re in business, you’re involved with contracts. It’s that simple.

It is important, therefore, that every businessperson know something about this element of business affairs. Learning to write your own business contracts is the best way to accomplish this. Even a basic understanding of the doctrine of contractual “privity” — the legal way of saying that only those persons that agree to a contract are bound by its terms (see Chapter 2: What Does a Contract Do?); the use and abuse of modifiers (see Chapter 13: Use (But Don’t Misuse) Modifiers; and, the benefit of writing in the active voice (see Chapter 14: Write with Authority), can go a long way toward helping you to better ensure the smooth and successful conduct of those affairs.

Canadian Business Contracts Handbook

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