Burden of Proof: Definition, Example and Related Terms
What is a Burden of Proof ?
Imagine you are playing a game where someone makes a claim, like 'I can run faster than you'. In this game, the person who made the claim has to prove it. That's what we mean by 'Burden of Proof'.
Now, let's talk about it in a business situation. In commercial contracts, the burden of proof is often on the party who is making a claim or asserting something. That party has to provide evidence to support their claim or assertion. This is important because it helps to make sure that people are being truthful and fair in business. It also helps to resolve disputes when they occur.
For example, if a company claims that it has delivered all the goods as per the contract, but the other company disagrees, the burden of proof would be on the first company to provide evidence of delivery.
Example(s)
Scenario Description A Software company (Company A) contracts with another company (Company B) to develop a custom software program. Company A claims that they have completed the program according to the contract, but Company B disagrees. In this scenario, the burden of proof would be on Company A. They would need to provide evidence that they have indeed completed the software program according to the terms and conditions laid out in the contract. This could include things like documentation of the work done, time logs, or even the completed software program itself. A manufacturer (Company C) enters into a contract with a retailer (Company D) to supply a certain quantity of goods. Company C claims that they have supplied all the goods as per the contract, but Company D disagrees. In this case, the burden of proof would be on Company C. They would need to provide evidence that they have indeed supplied all the goods as per the contract. This could include delivery receipts, invoices, or even tracking numbers for the shipments.