Читать книгу Revenue Recognition - Renee Rampulla - Страница 33

The definition of a contract creates enforceable rights and obligations. It is important to realize that an entity’s ability to enforce these rights and obligations may vary. Certain practices and processes for establishing contracts with customers can vary across legal jurisdictions (foreign and domestic), industries, and entities. In some places, consumer-friendly laws may invalidate a company’s contracts with its customers if challenged in a court of law. Therefore, careful consideration will be needed for contracts that have been approved and committed to by the entity and its customers that may not be enforceable in a court of law in a specific jurisdiction. This evaluation may be more complex in situations in which contracts are entered into across multiple jurisdictions.