This form provides boilerplate contract clauses that make provision for how transaction costs, both initially and in the event of a dispute or litigation, will be handled under the contract agreement. Several different language options are included to suit individual needs and circumstances.
South Carolina Negotiating and Drafting Transaction Cost Provisions
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SECTION 34-11-60. Drawing and uttering fraudulent check, draft, or other written order.
A transaction cost is any expense incurred when conducting an economic transaction. For example, while purchasing a product or foreign currency, there will be some transaction charges (in addition to the currency's price). The transaction cost could be monetary, extra time, or inconvenience.
Expenses (Transaction Costs) clauses deal with who will pay for expenses related to the preparation, negotiation, and execution of the agreement (e.g., attorneys' fees). The sample clause here is drafted to be neutral and provides that each party is to pay its own costs related to negotiating and signing the agreement.
In this essay, I define transaction costs as the cost of establishing and maintaining property rights. This definition illustrates that these costs arise out of more than information costs, that they are not just like taxes, and that they are necessary to explain any distribution of property rights.
SC Code § 11-35-3030 requires governmental bodies to obtain labor and material payment bonds on any contract to improve real property if the contract is valued in excess of $50,000.
Section 11-35-4210(1)(b) grants to any "actual bidder, offeror, contractor, or subcontractor who is aggrieved in connection with the intended award or award of a contract" a right to protest. A protest must be in writing and must be received within ten days of the date the award notice is posted.
Transaction costs are the total costs of making a transaction, including the cost of planning, deciding, changing plans, resolving disputes, and after-sales. Therefore, the transaction cost is one of the most significant factors in business operation and management.
Expenses (Transaction Costs) clauses deal with who will pay for expenses related to the preparation, negotiation, and execution of the agreement (e.g., attorneys' fees). The sample clause here is drafted to be neutral and provides that each party is to pay its own costs related to negotiating and signing the agreement.