It Is a Good Idea to Add a Penalty Clause

question 35

True/False

It is a good idea to add a penalty clause to an outsourcing agreement to ensure that work is completed on time.

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Definitions:

Problem

An issue or situation that presents difficulty and requires a solution.

Principle of Rights Theory

A normative theory that emphasizes the rights of individuals and the duties others have to respect those rights.

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental norms concerning what people are allowed to do.

Company

A legal entity formed by a group of individuals to engage in and operate a business commercially or industrially.