asked 211k views
4 votes
To cancel a contract and return to "status quo" is

asked
User Yunchi
by
8.3k points

1 Answer

3 votes

Final answer:

To cancel a contract and return to the status quo, defenders of the status quo can raise transaction costs to prevent changes from being made.

Step-by-step explanation:

If you are deeply committed to maintaining the status quo, you can deliberately raise transaction costs to the point that no changes to the status quo can be made. This means making it difficult or costly for any party to change the existing situation. For example, if a company wants to cancel a contract and return to the status quo, they might have to pay a penalty fee or go through a lengthy legal process. By raising the transaction costs, the defenders of the status quo make it unfavorable for any changes to be enacted.

answered
User Hugtech
by
7.6k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.