82,853
edits
Commercial imperative: Difference between revisions
Jump to navigation
Jump to search
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 4: | Line 4: | ||
For each party enters into a {{t|contract}} with a commercial aspiration; that all going well, that contract will yield some kind of benefit. That is it; that is the ''[[Causa sine qua non|sine qua non]]'' of entering into ''any'' [[commercial contract]]: you hope that, over time, it will help you will make money. Lots of money. If it does not, it is a dud {{t|contract}}. You should dispense with it.<ref>By terminating it on notice, rather than by exploiting legal drafting, needless to say.</ref> | For each party enters into a {{t|contract}} with a commercial aspiration; that all going well, that contract will yield some kind of benefit. That is it; that is the ''[[Causa sine qua non|sine qua non]]'' of entering into ''any'' [[commercial contract]]: you hope that, over time, it will help you will make money. Lots of money. If it does not, it is a dud {{t|contract}}. You should dispense with it.<ref>By terminating it on notice, rather than by exploiting legal drafting, needless to say.</ref> | ||
Assuming you have not, we can assume your contract indeed yields great benefit to you. Let us call the value of that benefit “X” | Assuming you have not, we can assume your {{t|contract}} indeed yields great benefit to you. Let us call the value of that benefit “X”. There are three types of X: | ||
*'''Historical X''': | *'''Historical X''': “Historical X” is the benefit you have ''already'' extracted from this {{t|contract}}. It will give you a comfy feeling, it brings to remind the chalet in France that you bought with it, and it may help project your expected benefit for the future, ''but for all other purposes Historical X is meaningless''. It is in the past. | ||
*'''Current X''': “Current X” is the value of booked and expected benefits from transactions that already exist or will arise during the non-fault [[notice period]]<ref>Being the earliest point at which your counterparty could freely terminate its obligations under the contract.</ref> of the contract'' . Think about this as “unbilled work in progress”. This is a benefit you can safely say you ''will'' earn, but have not yet. It is exciting — almost tangible — but, compared with Historical X and Future X, it will amount to bugger-all. | *'''Current X''': “Current X” is the value of booked and expected benefits from transactions that already exist or will arise during the non-fault [[notice period]]<ref>Being the earliest point at which your counterparty could freely terminate its obligations under the contract.</ref> of the contract'' . Think about this as “unbilled work in progress”. This is a benefit you can safely say you ''will'' earn, but have not yet. It is exciting — almost tangible — but, compared with Historical X and Future X, it will amount to bugger-all. | ||
*'''Future X''': “Future X” is the benefit you can expect throughout the remainder of your relationship, ''assuming you both remain solvent and on good terms''.<ref>As [[Criswell]] famously said, “we are all interested in the future, for that is where you and I are going to spend the rest of our lives.”</ref> Future X is much less ''certain'', but it is potentially ''huge''. This is the golden prize. This is what you should be focused on in every moment when you perform the {{t|contract}}. | *'''Future X''': “Future X” is the benefit you can expect throughout the remainder of your relationship, ''assuming you both remain solvent and on good terms''.<ref>As [[Criswell]] famously said, “we are all interested in the future, for that is where you and I are going to spend the rest of our lives.”</ref> Future X is much less ''certain'', but it is potentially ''huge''. This is the golden prize. This is what you should be focused on in every moment when you perform the {{t|contract}}. | ||
| Line 11: | Line 11: | ||
Now. Look at the prospects for each type of X. Historical X is in the bank. Current X is as good as being in the bank. ''But you are [[short an option]] on Future X.'' | Now. Look at the prospects for each type of X. Historical X is in the bank. Current X is as good as being in the bank. ''But you are [[short an option]] on Future X.'' | ||
Why are you [[short an option]]? Because ''you are not entitled to Future X''. You have to persuade your client to give it to you. You cannot stop it terminating your {{t|contract}} if it so wishes. ''You should apply every fibre of your being to giving | Why are you [[short an option]]? Because ''you are not entitled to Future X''. You have to persuade your client to give it to you. You cannot stop it terminating your {{t|contract}} if it so wishes. It could give all that lovely, juicy Future X to someone else. ''You should apply every fibre of your being to giving your client no earthly reason to take its business elsewhere''. In a very real sense, your future prospects depend on the continued performance of your valuable contracts.<ref>Just what to do about [[stale contract]]s, and where the parties have fallen out of affection for each other, is a subject for another article, but in a nutshell, ''shut them down''. They are the tail end of the 80 in your [[80:20 rule|80:20]] rule.</ref> | ||
===Legal risk=== | ===Legal risk=== | ||