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The Dilemma of Economic Contracting

The Dilemma of Economic Contracting (1) / Cuban Law Association, Rodrigo


Cuban Law Association, Rodrigo Chavez Rodriguez, Translator: Unstated

Monotony? War of attrition? Psychological pressure? False expectations?

Or direct or indirect solutions in the short, medium or long term?

With so many questions, we do not know how to start, but it is true and,

as always, there is a beginning and an end, that … God forbid, has

started and can be completed, directly or indirectly in the short,

medium or long term.

The issue of contracting, which is so inherent to the Cuban, that you

can almost say he has become a specialist in this area without even

knowing the essential elements that comprise it, suffice it to say that

"horse trading" or "haggling" or whatever you want to call it is a daily

form of establishing contractual relations between two or more people

who want to be engaged in a relationship, legal or (it's very

trendy in the underground market), and even though the State knows it,

it cannot act effectively against them and believe me, in this market

there is more than enough supply to meet the demand.

Let's look at the issue of the newspaper Granma, on August 3, 2012, on

page 4, titled Companies Must Play Their Part, by the Ivette

Sosa Hernandez. We ask ourselves, if the international contraction goes

badly, as required, is contracting at the national level in good ?

The rules for international contracts (covering a larger number of

subjects, different economies, etc.), are not the same as those that

apply to the national (internal order in the state enterprise sector and

even in the private sector).

Indeed, the laws and regulations that still apply to economic

contracting, do not conform to current conditions, so we can infer they

have been frozen in time.

Both internationally and nationally, concluding a legal instrument of

the magnitude of a contract, involves a solemn act, seriousness,

responsibility, rights and obligations for the parties, but is primarily

a meeting of the minds, wills backed by trust and commitment to its full

implementation, so much so that in its commitment and arbitration

clauses it does not become a dead letter.

Formalism, has become for Cuban entrepreneurs, something commonplace and

everyday and therefore close to creativity, so it is unusual to speak

about about bidding, negotiating; in such cases, the lawyer's voice or

intervention is usually relegated to the background, the lawyer is not

on the plane where he should be but is called in cases of default, when

conflict is already imminent, when given sufficient time he would have

known the state of gestation that led to the evolution, development and

delivery of such conflict.

October 1 2012

The Dilemma of Economic Contracting (2) / Cuban Law Association, Rodrigo

Chavez #Cuba

Cuban Law Association, Rodrigo Chavez Rodriguez, Translator: Unstated

Lic. Rodrigo Chávez

The underutilization of the attorney and the little or poor

participation accorded to him in the contracting process, ultimately

leads to problems with regards to the intentions or expected outcomes of

the established relations.

In any state agency, it is not difficult to see that the activity of the

lawyer, or the legal counsel, the attorney, or whatever you call him, is

limited or tied to the development of disciplinary action, claims that

could have been avoided, had he worked on the economics of the case, or

even in some instances as secretary to the Board of Directors. In the

latter role, discrepancies exist because some people advocate for him

and others do not, but in the end, whenever one is in a subordinate

role, the decision of the boss prevails without exception. A rational

use of human capital makes sense, but in the same vein is the irrational

use of the attorney.

There are lines which lead to imperfections in contracts, their normal

development, and given that in the end a contract is a voluntary

agreement, these must be true, solid, achievable objectively true and

not fictitious, things that in our day constitute justification,

failures to meet production or distribution or provide services, the

inadequate or improper use of the contract; it would not be improper to

speak in these terms same terms with regards to planning.

The labyrinth through which contracting passes, affects the stipulations

for agricultural production, as well as those for supplies, and even the

execution of the work; in these three alone the incidence rate is so

negative, it deserves special attention devoted to it, given that even

if the performance of a farmer's harvest exceeds expectations that, too,

does not meet the objective of achieving the terms because it was not

reflected in the contract.

How is it possible that markets are largely unserved, making it possible

to supplement the initial contract, but here's another great dilemma: if

it is nefarious to fail to meet the plan, it is more nefarious to over

fulfill it. They would have to walk hand in hand as binomial-procurement

planning. With proper planning, could well provide an adequate contract,

and with a good solution, it would lead to a good distribution and a

high probability of satisfying the consumer, right?

October 2 2012

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