Imagine a scenario where one person has wronged the other in a business transaction such as providing bad service or one party intentionally gave the other a bad deal to enrich themselves. Usually, people on the outside would say one should sue the other since they wronged the other. But in reality, a lot of people don’t as it just isn’t worth people’s time to go after say a few hundred dollars if it involves a year long process. So most just write it off as a loss.
Pretend you required a team of expensive lawyers trying to get you say $500 back. Would that really be worth it? That begs the question, how much value does the loss need to be for you to actually pursue someone for breaking an agreement? It’s different if you are a large corporation that has a dedicated team of in-house lawyers or collection agency workers for large service providers. With the volume of business they do they specifically have people to chase for say unpaid bills all the time.
Now think of it if it is someone with a small home-based business where one customer didn’t pay a ten-dollar bill. Is that enough to go after them for it? How about a hundred or a thousand? Heck, I know many times even just for court cases a lot of layers say if the monetary value isn’t that high just forget about it. That’s kind of hard to swallow if you have been wronged huh? It does come down to a return of investment as well unfortunately for many versus simply an action one takes just purely out of principles. How much does the loss need to be worth it for you to take action?