Mary Hernandez was developing a plan for her new IT consulting business in Kingston. The plan suggested that her client base would comprise a large number of relatively small clients, from one-person operations often run out of a private residence, to smaller retailers in the central business district, to small offices in the local business park. She knew the consulting industry was very competitive and she was sensitive to costs, particularly in the case of smaller engagements. One of the items that concerned her was the potential cost of contracts for services. While she thought that being very responsive to client needs regardless of the size of the business would set her apart from the competition, she knew that involving a lawyer to customize a contract for every engagement would be very expensive.

What are three reasons that might support Hernandez adopting a standard form contract?

What negative consequences are likely in the event of a business failing to meet its contractual obligations?