Liabilities

Managers always have the daunting task of taking control of all operations and taking on the responsibilities and problems that come along with the glory.   Contract creation is a very detailed process in which each side is trying to maximize their benefits to assure that the deal is going to be profitable.   The first rule of business should be to always deal with other reputable, established, and profitable organizations.   By dealing with the right organizations, both parties will not be greedy and look in the best interest of creating a fair contract.   The ideal situation would be to create as close to a monopoly as possible to assure that all contracts have to go through the organization.   When other lines of business are looking to make contracts, the monopolistic organization can call all of the shots and choose the best offer.   Another benefit is knowing that if any complication come up during the negotiation process, there is another company always willing to make another deal.   A prime example to look at is Microsoft and their ability to distribute their products to major computer manufacturers in the most profitable situations.   Microsoft, having all the top of the line software, is in the driver’s seat and can determine market price for their products.
Contract ambiguities will cause continuous problems during contract years.   It is essential for managers to hire qualified lawyers to read the contract language to make sure all verbiage is clear cut.   Successful organizations do not have to take short cuts and cheat other organization because they know that their product will always be profitable.   Contract ambiguities lead to lawsuits along with wasted time and money due to continuous court appearances.   A manager can always prevent contract ambiguities by keeping contracts simple.   There is no need for ambiguities if both parties are clear from the beginning what they expect out of the contract.   Another way to prevent lawsuits on contract ambiguities...