Asked by terrence showers on May 12, 2024
Verified
Contract terms can be designed to eliminate or reduce conflicting incentives that arise in business relationships.
Conflicting Incentives
This term refers to situations where parties involved have different motivations or incentives, leading to potential conflicts in decision-making.
Contract Terms
The specific conditions, provisions, and obligations agreed upon by parties in a contract.
- Understand the methods for addressing conflicts of interest via contractual agreements.
Verified Answer
JN
Jaiveonna NorrisMay 17, 2024
Final Answer :
True
Explanation :
Contract terms can indeed be tailored to minimize or eliminate conflicting incentives that may arise in business relationships. This is one of the key functions of contracts in business arrangements.
Learning Objectives
- Understand the methods for addressing conflicts of interest via contractual agreements.