Connect with us

THE ASIAN POST

Meaning For Mutual Agreement

Meaning For Mutual Agreement

A mutual agreement is for two parties to commit each other to take or refrain from undertaking one or more defined acts. A mutual agreement can be oral or written and is also called a contract. During the signing session of the cycle, the development organization and the company meet again to sign the document for the cycle. Each person on the team will sign this document that reflects their understanding of the team`s commitments. This process should be given the full formality of a contract, as it is, a six-week agreement between the company and the development agency. Oral agreements can be applied in the same way that written agreements can, but it is obviously easier to enforce a written agreement. The agreed terms are set black and white and are not open to “he said, she said” interpretation. Markets are an example of a paradigm of a self-generating or spontaneous social order (Hayek 1973, p. 37), i.e. social arrangements in which participants` activities are spontaneously coordinated, through mutual adaptation or adaptation of separate decision-makers, without conscious and central direction. In this sense, the market order “as a particular type of social structure” (Swedberg 1994, p. 255) may be opposed to the deliberate and centralized coordination of activities within companies or organizations, i.e. within social entities such as “family, factory, factory, business, company, company and all associations, as well as all public institutions, including governments” (1973).

46). One of the central themes of F. A. Hayek`s work is that the distinction between the “two types of order” (Hayek 1973, p. 46), the market and the organization (Vanberg 1982) is fundamental to an adequate understanding of the nature of social phenomena in general and market order in particular. The lack of adequate recognition of the nature of the market as a spontaneous social order is, according to Hayek, a great source of confusion in discussions on economic theory, and in particular on economic policy, confusion which he attributes in part to the ambiguity that is implied when the term “economy” is used to describe the market order. Since the term is derived from the Greek word oikonomia, which means domestic economy, “an economy in the strict sense is an organization or agreement in which someone deliberately assigns resources to a unit order of the extremities” (Hayek 1978, p. 178).

To avoid misleading connotations, Hayek proposes not to refer to the market order as an economy, but as a catallaxia – derived from the Greek word katallatein, which means “exchange” (Hayek 1976, p.

Continue Reading
Advertisement
You may also like...

More in

To Top