Risk Assessment of Business Contracts

  1. Hervé Panetto and
  2. Nacer Boudjlida
  1. Vandana Kabilan1 and
  2. Hans Weigand2

Published Online: 22 JAN 2010

DOI: 10.1002/9780470612200.ch16

Interoperability for Enterprise Software and Applications: Proceedings of the Workshops and the Doctorial Symposium of the Second IFAC/IFIP I-ESA International Conference: EI2N, WSI, IS-TSPQ 2006

Interoperability for Enterprise Software and Applications: Proceedings of the Workshops and the Doctorial Symposium of the Second IFAC/IFIP I-ESA International Conference: EI2N, WSI, IS-TSPQ 2006

How to Cite

Kabilan, V. and Weigand, H. (2006) Risk Assessment of Business Contracts, in Interoperability for Enterprise Software and Applications: Proceedings of the Workshops and the Doctorial Symposium of the Second IFAC/IFIP I-ESA International Conference: EI2N, WSI, IS-TSPQ 2006 (eds H. Panetto and N. Boudjlida), ISTE, London, UK. doi: 10.1002/9780470612200.ch16

Author Information

  1. 1

    Department of Computer and Systems Sciences Royal Institute of Technology and Stockholm University FORUM 100, SE 164 40 Sweden

  2. 2

    Infolab, Tilburg University PO Box 90153, 5000 LE Tilburg The Netherlands

Publication History

  1. Published Online: 22 JAN 2010
  2. Published Print: 1 JAN 2006

ISBN Information

Print ISBN: 9781905209613

Online ISBN: 9780470612200

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Keywords:

  • e-contracting;
  • risk assessment;
  • interoperability

Summary

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 (1) to spell out the expected behaviour from all parties concerned, (2) to make explicit all the obligations and responsibilities that each party undertakes to fulfil and (3) to divide the potential risks and costs involved in the proposed business transaction so as to be a mutually satisfactory arrangement. In this paper, we focus on the risk assessment and evaluation of proposed business contracts. By analyzing the obligations and their fulfilment criteria as stipulated in the business contract and thereafter applying risk models, we propose a methodology for evaluating the suitability of a proposed contractual terms and conditions for a particular business organization.