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Concept
Contract law governs the creation and enforcement of agreements between parties, ensuring that promises made are legally binding and enforceable. It provides the framework for determining when a breach has occurred and the remedies available to the injured party.
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Mediation is a structured process in which a neutral third party assists disputing parties in reaching a mutually acceptable agreement. It emphasizes collaboration and communication, allowing parties to explore solutions outside of a formal legal setting.
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Stakeholder theory posits that organizations should consider the interests and well-being of all parties affected by their actions, not just shareholders, to achieve sustainable success. It emphasizes the importance of balancing the needs of various stakeholders, including employees, customers, suppliers, and the community, to foster ethical and socially responsible business practices.
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Agency Theory explores the relationship between principals, such as shareholders, and agents, like company executives, highlighting the conflicts that arise when agents prioritize personal interests over those of principals. It emphasizes the need for mechanisms to align the interests of agents with those of principals to mitigate issues like moral hazard and information asymmetry.
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A conflict of interest arises when an individual's personal interests could potentially influence their professional judgment or actions, leading to a compromise in integrity and ethical standards. Managing conflicts of interest is crucial to maintaining trust and transparency in professional and organizational settings.
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Arbitration is a private dispute resolution process where an impartial third party, known as an arbitrator, is appointed to make a binding decision on a conflict between parties. It is often chosen for its efficiency, confidentiality, and flexibility compared to traditional court proceedings.
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Liability refers to the legal responsibility one has for their actions or omissions, which can result in being subject to legal action or financial obligation. It is a fundamental concept in both personal and Business Contexts, affecting how risks are managed and obligations are fulfilled.
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Neutrality refers to the state of not supporting or assisting any side in a conflict or disagreement, maintaining an impartial stance. It is crucial in diplomacy, international relations, and journalism to ensure unbiased decision-making and reporting.
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Intermediation refers to the process by which intermediaries, such as banks or brokers, facilitate transactions between parties, often adding value through expertise, risk management, and economies of scale. This process is crucial in financial markets and other areas of the economy, as it helps allocate resources efficiently and reduces transaction costs for individuals and businesses.
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Externalities are costs or benefits incurred by a third party as a result of an economic transaction, which are not reflected in the transaction's price. They can lead to market failures if not properly addressed, as the true social cost or benefit is not accounted for in the decision-making process.
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Agency by estoppel arises when a principal's actions lead a third party to reasonably believe that an agent has authority to act on the principal's behalf, even if such authority was never granted. This doctrine prevents a principal from denying the agency relationship if the third party has relied on the apparent authority to their detriment.
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