Stockholm School of Economics in Riga
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations. These business relationships are often governed through legal business contracts. Contracts are instruments in not only establishing the legality of the business relationships but also to spell out the expected behavior from all parties concerned, to make explicit all the obligations and responsibilities that each party undertakes to fulfill and to divide the potential risks and costs involved in the proposed business transaction so as to be a mutually satisfactory arrangement. In this paper, the authors focus on the risk assessment and evaluation of proposed business contracts.