What Is Moral Hazard?
Moral hazard is the risk that a party has not entered into a contract in good faith or has provided misleading information about its assets, liabilities, or credit capacity. In addition, moral hazard also may mean a party has an incentive to take unusual risks in a desperate attempt to earn a profit before the contract settles.
Moral hazards can be present anytime two parties come into agreement with one another. Each party in a contract may have the opportunity to gain from acting contrary to the principles laid out by the agreement.
Anytime a party in an agreement does not have to suffer the potential consequences of a risk, the likelihood of a moral hazard increases.
………………….
Check out other legal English topics: https://blog.seocopywriting.ro/2025/01/15/topics-for-our-legal-english-courses-opening-statements/
…………………………………………………
✨Hi, I am Iulia,
#Englishcoach, #copywriter #editor #premiumlegalEnglishteacher #chieffairytalerofficer #jobhelper #journalist
💥Your friendly teacher of all things under the sun: legalese, business, finance, marketing, copywriting, and creative writing.
💥We can work together to craft your personalized content, polish your English-speaking skills, and secure your place in the sun.
⚡️Without excellent English, there’s no path forward!
✨PS: If you want to work with me, book a preliminary free session, or ask me a question, please call or write:
📞0722841053
💻contact@cursinengleza.ro
💻contact@engleza-de-afaceri.ro
💻englezadeafaceri@gmail.com