The current market has entered into a world of corporations, where choices have just become illusions. People think they are buying products from one company and not the other.But in fact, they couldn’t be more wrong in most cases.
For example, when you go to the cereal compartment in a shopping mall it may seem like you have many different choices from various brands but in reality, all cereal markets, or rather 79% of it is controlled by only three companies and they are Kellogg’s, General Mills, and Post. Kellogg’s obtained Pringles from the company Procter and gamble (an American multinational consumer goods corporation) a while ago and it is now really one of the most successful snack acquisitions in history.
Drafting of contract:
Contracts are quite powerful tools, and as we know “with great power comes great responsibilities”, so drafting the terms of the contract should be done with absolute scrutiny otherwise if they get ratified with wrong terms or absence of some important clauses in it, it might result in unprovoked and may be colossal damages to either one party or both.
Market penetration:
Corporate contracts are the lifelines of businesses today, they help in market penetration and developing new streams of revenue by getting access to the new market. It saves time and resources that are needed to construct knowledge for optimal market operation. Moreover, it makes many business operations more efficient by delegating responsibilities among the parties of the contract and sharing risk associated with the risk and liabilities across all the parties.
In today’s contemporary world professionals and parties are well aware of deal-making and breaking because of the lawsuits that have taken.
Contracts are extremely paramount in business deals too as both the parties have their expectations and they earlier decide their prices according to the services provided. Purchasing raw materials, buying and selling, procurement of services and payments require knowledge of the contract. Perception of work in the corporate world makes it a lot more significant.