Often it is more desirable to renegotiate a contract than to terminate one. What do you think may be some of the effects of a contract termination from the buyer’s perspective? What about from the seller’s perspective? No copy and paste or screen shot pictures please use a reference
It is desirable to renegotiate e a contract rather than to teminate it. When a contract has been entered than their are various consideartions to it like a contract is done after considering its viabilty, feasiblty reports have been prepared , various cost analysis have been done etc.
So legally when a contract has been done and the work has been started it is always advisable to renegotiate it as it will effect both buyer and seller.
From buyers perspective it it is beneficial since high cost has already been made and searching for a new seller will again involve time and cost.
From sellers perspective it is beneficial because not only cost is involved but also reputation of the firm is also at stake.
For example if a car manufacturing has entered in to an agreement with a company for providing pistons and after a certain time they realize that quality is compromised its better to sit with the seller and renegotiate the terms rather than opting for new quotations for fresh proposals as cost and reputation of the seller will be at stake so the seller will be ready to improve the qualilty , and can continue in the contract which shall be good for both buyer and seller…