Contracts and why sometimes nobody cares for them

IP Draughts published an interesting article about contracts and some of the reasons why contracting parties don’t follow partly or as a whole the relevant obligations set out in them. This is a problem for companies not only for some particular region but around the world.

Some of the reasons behind this are:

• Operational managers have no capacity or enough information how to implement such contracts which were negotiated by the top managers.
• Nobody in the company cares what the contract says.
• The relevant employees are incapable of following detailed written procedures as set out in the contract because of lack of information or knowledge.
• Team dynamics result in a different way of working.

All of this can lead to unpleasant lawsuits and disputes. To prevent such consequences every company have to implement the contract clauses in their standards and policies for work and to train their personal every now and then.

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