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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication

Sharma Traders emails a supplier a letter of intent stating, 'we will buy 500 units at ₹200 each if quality is approved'. To avoid later dispute over what was finally agreed, the best drafting practice is to:

The best practice is to record all agreed terms, including quality criteria, clearly and unambiguously in writing. Clear documentation serves as evidence and reduces disputes, while vague wording, reliance on phone calls or confusing jargon leaves room for conflicting interpretations.

  1. ARely on later phone calls to clarify terms
  2. BLeave the quality standard undefined to keep flexibility
  3. CRecord all agreed terms clearly and unambiguously in writing, including the quality criteriaCorrect
  4. DUse technical jargon that the supplier may not understand

Explanation

Clear, complete and unambiguous written terms, including how quality approval is judged, reduce disputes and serve as evidence. Oral clarifications and vague terms are hard to prove and invite conflicting interpretations.

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