Posts tagged binding contract
Why A “Binding” Contract Doesn’t Really Bind the Parties

Many people think that a binding contract guarantees results, that both parties are obligated to perform the contract as written. But a contract isn't a guarantee, and contract damages are designed to compensate the non-breaching party, rather than to punish a breaching part for bad behavior. When negotiating a contract, rather than expecting that the other party will perform as agreed, each party should focus on the parties' goals and incentives to perform.

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