Recognizing Contract Risk and Opportunities
Recognizing Contract Risk and Opportunities
Ebel M. Aquino
LAW/531
Sunday, June 21, 2015
Prof. Israel Camacho-Alicea
Risks and Opportunities
To do business you always have to measure the risks and opportunities to avoid bad losses resulting from bad operational business practices and poor contract execution. And in this case, Puerto Rico is no exception. The Civil Code of Puerto Rico establishes in Article 1213 Contract requirements (31 LPRA § 3391.) But no contract is effective unless the following requirements are follow: 1) consent of the parties, 2) certain object that is the subject of the contract 3) Cause of the obligation to be established. From a business perspective this means that since the starting of the establishment of the relationships between the parties there has to be an explanation in detail of the scope of work, define what it seeks to negotiate, have transparency on what are the potential risks of negotiation and establish a good process to work it.
However, opportunities may occur at usual after the contract has been agreed by the parties and begin to exercise the provisions. If a party fails, despite having contemplated the potential risks, it is where the opportunities to improve the business process are identified and, if necessary, appropriate amendments to the contract are made. Commercial practice in Puerto Rico, in cases where the contract agreements are not properly executed, once the parties establish a communication to analyze the facts, the contracting party usual considers to give an opportunity for the contracted party to have spaces to improve, this may occurs within a cultural context.
Managing Decisions
“Managers are directly responsible for the success or failure of an organization” (Robbins and Coulter, p. 62, para. 1). It is for this reason that in making decisions, legal or non-legal, a manager must always consider all scenarios to minimize risks, because “managers are critical to corporate strategy formation: As
Ebel M. Aquino
LAW/531
Sunday, June 21, 2015
Prof. Israel Camacho-Alicea
Risks and Opportunities
To do business you always have to measure the risks and opportunities to avoid bad losses resulting from bad operational business practices and poor contract execution. And in this case, Puerto Rico is no exception. The Civil Code of Puerto Rico establishes in Article 1213 Contract requirements (31 LPRA § 3391.) But no contract is effective unless the following requirements are follow: 1) consent of the parties, 2) certain object that is the subject of the contract 3) Cause of the obligation to be established. From a business perspective this means that since the starting of the establishment of the relationships between the parties there has to be an explanation in detail of the scope of work, define what it seeks to negotiate, have transparency on what are the potential risks of negotiation and establish a good process to work it.
However, opportunities may occur at usual after the contract has been agreed by the parties and begin to exercise the provisions. If a party fails, despite having contemplated the potential risks, it is where the opportunities to improve the business process are identified and, if necessary, appropriate amendments to the contract are made. Commercial practice in Puerto Rico, in cases where the contract agreements are not properly executed, once the parties establish a communication to analyze the facts, the contracting party usual considers to give an opportunity for the contracted party to have spaces to improve, this may occurs within a cultural context.
Managing Decisions
“Managers are directly responsible for the success or failure of an organization” (Robbins and Coulter, p. 62, para. 1). It is for this reason that in making decisions, legal or non-legal, a manager must always consider all scenarios to minimize risks, because “managers are critical to corporate strategy formation: As
References: The Civil Code of Puerto Rico Article 1213 Contract Requirements Robbins, S., & Coulter, M. (2005). Management (8th ed.). : Pearson. Ren, C.R., & Guo, C. (2011). Middle Managers’ Strategic Role in the Corporate Entrepreneurial