Countermand

Definition

Countermand means to revoke or withdraw a previously issued order by providing a new, contradictory instruction. It is a directive that negates an earlier command and is meant to prevent the execution of the original order.

Examples

Sales Transaction: A sales manager authorizes a sales representative to sell goods to a client with a credit limit up to $50,000. Shortly after, the sales manager realizes the client has a poor credit history and counters the original authorization by instructing the sales representative to deny any credit to the client.
Military Command: A superior military officer provides an order for a unit to advance towards a specific location. However, new intelligence reports necessitate a change in plans, and the officer orders a countermand, instructing the unit to halt their advance and prepare for a different task instead.
Operational Directive: In a manufacturing plant, a supervisor instructs the operations team to begin production on a new product. Soon after, due to a sudden change in demand forecasts, the supervisor issues a countermand to stop the production and revert to producing an older, more in-demand product.

Frequently Asked Questions (FAQs)

Q: Is a countermand legally binding? A: Yes, a countermand is legally binding as long as it comes from an appropriate authority and is communicated clearly to the parties involved.

Q: How does countermand affect business contracts? A: Countermand can impact business contracts, as it withdraws previous agreements or terms. It must be clearly documented and communicated to prevent any legal disputes or misunderstandings.

Q: Can a countermand be overridden or repealed? A: Yes, a countermand can be overridden or repealed by another directive from the appropriate authority, depending on the circumstances and organizational hierarchy.

Revocation: The act of withdrawing or annulling a decision or order.
Retraction: The action of taking back an earlier statement or order.
Annulment: Officially declaring something invalid or void.
Rescind: To revoke, cancel, or repeal a law, order, or agreement.

Online References

Suggested Books for Further Studies

“Black’s Law Dictionary” by Bryan A. Garner
“Business Law and the Regulation of Business” by Richard A. Mann and Barry S. Roberts
“A Manual of Style for Contract Drafting” by Kenneth A. Adams
“Law of Contracts” by John D. Calamari and Joseph M. Perillo

Fundamentals of Countermand: Business Law Basics Quiz

### What does the term countermand mean? - [ ] To approve a previous order. - [x] To revoke a previous order by issuing a contradictory one. - [ ] To confirm an existing command. - [ ] To negotiate terms of an order. > **Explanation:** Countermand refers to the revocation of a prior order by issuing a new, contradictory instruction. ### Which of the following best illustrates a countermand in a business context? - [ ] Confirming an order for goods. - [x] Revoking credit authorization to a client. - [ ] Extending a line of credit to a new client. - [ ] Reaffirming a delivery date for products. > **Explanation:** Revoking credit authorization to a client after initially granting it is an example of a countermand. ### Can a countermand be legally binding? - [x] Yes, if issued by the appropriate authority. - [ ] No, countermand is merely a suggestion. - [ ] Only if both parties agree to it. - [ ] It depends on the formality of the original order. > **Explanation:** A countermand is legally binding if it is issued by an appropriate authority and communicated clearly. ### What is a critical aspect for a countermand to be effective? - [ ] It must be issued in writing. - [ ] It should be delivered personally. - [x] It must be communicated clearly to relevant parties. - [ ] It requires legal ratification. > **Explanation:** Clear communication to all relevant parties is essential for a countermand to be effective and enforceable. ### Which term is closely related to countermand? - [x] Revocation - [ ] Allocation - [ ] Endorsement - [ ] Delegation > **Explanation:** Revocation is closely related to countermand, as both involve retracting or withdrawing previously issued commands or authorizations. ### What could be a likely reason for issuing a countermand in a military context? - [ ] Budget increases - [x] New intelligence reports necessitating changed orders - [ ] Personal reasons of the commander - [ ] External political pressures > **Explanation:** New intelligence reports can make it necessary to change previous orders, leading to a countermand in a military context. ### How does a countermand differ from a modification? - [x] Countermand revokes the order, while modification changes it. - [ ] Countermand strengthens the order, while modification weakens it. - [ ] Countermand is a legal term, modification is informal. - [ ] They are essentially the same. > **Explanation:** A countermand revokes the order completely by issuing a contradictory one, while a modification simply changes some aspects of the original order. ### Who can issue a countermand? - [x] An authorized authority - [ ] Any employee - [ ] A customer - [ ] An external consultant > **Explanation:** Only an authorized authority within the organization or hierarchy can issue a countermand. ### Which document might be significantly altered due to regular countermand practices? - [ ] Employee handbook - [x] Operational directives - [ ] Company mission statement - [ ] Financial statement > **Explanation:** Operational directives might be significantly altered due to regular countermand practices as strategies and instructions change. ### What can reduce confusion resulting from frequent countermanding in an organization? - [ ] Increasing automation - [ ] Ignoring old orders - [x] Clear documentation and communication - [ ] Cutting down on briefings > **Explanation:** Clear documentation and communication of orders and countermanding can reduce confusion within the organization.

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