We have been using the law and court systems for ages to seek justice and the truth. The processes could be difficult and you have to go through plenty of procedures. Numerous things need to be understood before the proceeding can happen. Among the procedures and matters that need to be resolved are the venue, Standard Form of Contracts, and other legal matters related to the upcoming hearing and proceeding. There is a lot to understand especially regarding the standard form of contracts. It might be quite confusing, especially for first-timers and that is why we are going to reveal to you everything you need to understand regarding this.
Standard form contracts are basically contracts that were pre-written and non-negotiated. They have other names such as “take it or leave it” contracts, boilerplate contracts and contracts of adhesion. Standard Form Contracts are commonly used in the arbitration to ensure that all parties comprehend the norms and regulations. The corporate lawyers would be responsible to write the contracts with the presence of legal jargon and the main purpose of the contract is to make negotiations between two parties. In this case, the other party would be the one who is accountable to form the contract with both parties’ agreements.
The Importance of Standard Form Contracts
This contract can be considered a must for the proceeding to occur. Since the main purpose is creating an agreement between both parties, it means they are bounded by whatever content that is in the contract. There are numerous reasons why these contracts are significant and without their presence, both parties might have to bear the outcome on the hearing or proceeding day. One of the reasons why the standard form contracts are important is they lessen the time taken for the whole process.
The process could take quite a lot of time and most people would want the matter to be resolved as soon as possible. In arbitration, the negotiation part has been eliminated hence why these contracts are needed. All they have to do is to sign the contract and the negotiation can be completed in a blink of an eye.
Other than that, it is cost-effective. Why? This is due to the fact that the parties are allowed to have their own customised contract. This would burn a hole in the pocket since they are done by those who are eligible and professional. This kind of contract is the standard one being used in most arbitration so the price is more reasonable and affordable.
Lastly, they are intended to make both parties understand how the whole procedure would be and what laws they need to abide by. The content of the contract might have been explained plenty of times before the negotiation actually begins so this is where it plays the role. The T&Cs and so on are included and they are actually the basic ones and should be easily understood by both parties. If anything happens during the proceeding and hearings, they can refer to the contract they have signed and see if they have breached the agreement or not.