What are the Risks Associated with Long-Term Contracts?
While long-term contracts offer stability, they also come with risks:
Market Changes: Market conditions may change, making the contract less favorable over time. Dependency: Over-reliance on a single long-term contract can be risky if the contract is terminated. Flexibility: Long-term commitments can limit a business's ability to adapt to new opportunities or changes in the industry. Legal Disputes: The longer the contract, the higher the potential for legal disputes over interpretations of terms.