Why do many businesses often use standard form contracts?

Answer 1

For a business, using a standard form contract is extremely efficient because they do not have to draft a new contract for every single person they make an agreement with (think about downloading software upgrades). It also gives companies the ability to issue contracts on a take-it-or-leave it basis. The person entering in to the contract does not have the opportunity to negotiate the terms.

Answer 2

A standard form contract is a contract between two parties where the terms and conditions of the contract are set by one of the parties, and the other party is placed in a "take it or leave it" position with little or no ability to negotiate terms more favorable to it. It is very simple and saves time and energy. It involves less negotiation as the party already frames the terms of the contract. If the other party accepts the term then he can directly inter into contract.

Answer 3

Standard form contracts are not easily amended nor are they open to discussion. There has been a recent move to drift away from the rigidity of the standard form contracts because employers would make changes in the special condition section and there is a greater risk.

Standard form contracts also have their fair share of disputes when it comes to offer and acceptance. Since the terms are not easily changeable both parties engage in the "battle of forms" until there is a mutual agreement on the last contract's terms.

Answer 4

They are easy to use, and there is no need to expend additional time and money drafting a new contract each time. Also, the standard forms that are employed generally favor the companies.