contractual risk
[kənˈtræktʃuəl rɪsk]
nounpl: contractual risks
risco contratual
1. The potential for financial loss or unfavorable outcomes arising from obligations, terms, or conditions specified in a contract
The company assessed the contractual risk before signing the long-term supplier agreement.
A empresa avaliou o risco contratual antes de assinar o acordo de fornecimento de longo prazo.
2. Exposure to liability or non-performance by either party in a contractual agreement
Contractual risk includes penalties for late delivery and breach of warranty clauses.
O risco contratual inclui penalidades por atraso na entrega e violação de cláusulas de garantia.
3. The possibility that unforeseen circumstances or ambiguous contract terms may lead to disputes or financial consequences
We implemented stronger clause definitions to minimize contractual risk in our new partnerships.
Implementamos definições de cláusulas mais fortes para minimizar o risco contratual em nossas novas parcerias.
In Brazilian business culture, contractual risk assessment is increasingly emphasized due to economic volatility and complex regulatory environments. Companies often hire specialized risk managers and legal consultants to identify and mitigate contractual risks. In the USA, contractual risk management is deeply embedded in corporate governance and frequently addressed through insurance, indemnity clauses, and detailed contract negotiations. Both cultures prioritize risk allocation between parties as a fundamental aspect of contract drafting.
Related Idioms & Phrases
mitigate contractual risk
assess contractual risk
contractual risk allocation
shift contractual risk
unquantifiable contractual risk
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