Business Negotiations and the Law

2 Weak business parties

Weakness in negotiations and standard form contracting

It has been thoroughly discussed how the whole subject matter of standard contract terms is naturally linked to the economic activity of business parties and to the entrepreneur’s subjective status. The modern organisation in the mass production and distribution of goods and services has led to extreme specialisation of companies. This, in its turn, allowed the establishment of large and influential specialised companies with a strong economic position. Relatively few companies detain a strong bargaining power and are therefore able to impose their standard contract conditions on their customers, who are rarely able to find other companies willing to provide ...