Over the last few decades, a great deal of research attention has been dedicated to the study of contract law. The field of incomplete contracts in relation to commercial consequences and the measures that companies can take to secure their positions are is still in need of further study and research. , not least because of constantly changing business, legal and technological environments. The impacts of possible changes in business laws and policy have a major significance in dispute settlements, such as those occasioned by incomplete commercial contracts.
Logic and intuition suggest that the problems facing contracting parties, in the event of difficulties, would be very different if the agreement contained easily verifiable commitments, such as tariff bindings, as compared to situations where there are a number of different provisions. 1 (This still needs clarification. ) Hence, a closer analysis of the optimal design of contracts and dispute settlement mechanisms in the context of incomplete commercial contracts is needed to shed light on the causes behind the continuing occurrence of this inconsistency.
All contract types, whether joint venture or informal contracts, must reflect the 'settled indicia of a binding contract under Australian law', i. e. be legal. 2 This means that requirements such as consideration and certainty of terms should be satisfied. However, and as will become clearer after a closer analysis, satisfying these requirements does not protect a contract from falling into the black hole of incompleteness, as this can occur any time one or both parties fails to address an important element of a given transaction.
Australian law is very slow to rescue parties from incomplete agreements, which can add to the financial losses in such events. Including a clause addressing agreements to agree [ML1]is, on the other hand, considered to be a 'superficial commercial attraction' as it is bound to lock both parties into an agreement where they cannot commit themselves to a firm contract at the outset. 3 The purpose of this paper is to present an analytical and investigative study to examine the relationship between the identification of the causes of incomplete contracts and the extent to which this can help protect business interests.
To assess this, it is essential to introduce contract law as applied in the Australian legal system, focusing on particular circumstances, and then apply these principles to certain situations which can cause a contract to be incomplete. Since in Australian law, a gratuitous promise cannot be enforced as a contract, agreements ought to be made under a seal, or else the promise ought to have provided an agreement[ML2]. In most legal systems, it is common to find a mechanism which provides accords used to enforce as enforceable contracts.
In this paper, the researcher conducts a correlational study using case studies researched by other investigators, in addition to collecting data from academic sources; certain assumptions and limitations have been made. The information collected is based on data gathered by previous researchers within the field and their approaches. In addition, their ideas and conclusions are inherently open to discussion, as is most scholarly work does.
This means that vulnerabilities within the methods used and the conclusions reached in the academic information employed in this study limits the scope of assumptions that this specific research is able to make. (rewrite it, it is too wordy to read) Contract law permeates nearly every aspect of the business and private lives of all people in Australia, as implied in the landmark 4cases such as Carlill v. Carbolic Smoke Ball Co,5 Employment Rights Act and the Sale of Goods Act 1979;6 establishing the extent of contract law violations.
In the present research, the pilot study makes use of customer complaints, violations of consumer protection laws and employment relations conflicts, among other such incidents, as indications of non-completion of contracts, which are then used to estimate the damages caused by incomplete contracts. Developments in Australian contract law, as well as the sources and effects of different sources on Australian contract law, along with the adequacy of common and statute laws in the formation, implementation of contracts and mitigation of injury in the case of non-completion of contracts will be examined.
7 The pilot study uses the available existent literature on alternative conflict resolution and the role of good faith in Australian contract law to establish the role played by these factors in the mitigation of the injury suffered by the parties to contracts and, perhaps most crucially, to determine the role that these legal tools could play in the future changing legal environments in the future.