A contract is an agreement between two parties under which one party promises to do something for the other in return for compensation (Morris, & Pinto, 2007). In essence, it is an obligation on both parties to fulfil their part of the agreement and operate within the framework of law. The parties involved are the purchaser and the supplier or the sponsor and the vendor. The contract is an essential document that outlines the agreement made by both parties. The contract should contain specific language detailing the requirements of both parties. The contract defines what was agreed upon by each party, a definition of what happens when things change, a definition of obligations, a definition of the relationship between the parties and the level …show more content…
According to author of the book, Supplier Relationship Management, the litigation process is typically expensive and consumes vast amounts of time to prepare for, and may still fail to secure the required outcome. Since Project managers are not legal experts or lawyers, there must be a plan in place to handle contracts. This plan is termed contract management. Contract management is a process that an organization may use to manage the negotiation, execution, performance, modification and termination of contracts with various parties including customers, vendors, distributors, contractors and employees (Glutterman, 2013). Good contract management ensures that the process from beginning to end is conducted in a logical manner and sets the groundwork to prevent disputes and provides a means to resolve issues that …show more content…
According to the PMBOK (2013), close procurement is the process of completing each procurement. This is to ensure that all documentation and information are gathered carefully from one stage to the next to close out the contract. In short, it also allows for Project Managers to confirm the steps outlined in the Procurement Management Plan. For instance, documents are archived, stakeholders’ are notified and legal requirements are addressed. This is also to ensure that the involved parties understand their roles, because the buyer and the seller has certain rights and responsibilities during closure. For example, the buyer may have the right to terminate the whole contract or a portion of the contract, at any time, for cause or convenience (PMBOK, 2013). Responsibilities include the seller notifying the buyer with formal notice that the contract is completed and that the buyer resolves all deliverables outlined in the
This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.
...hing that was not ever the easiest type of contract to navigate but over the years the requirements have continued to get more complicated and require a lot of additional effort on the contract and the contracting officer. A contracting officer does not just accept the data supplied by the supplier as acceptable. A contract officer will have to perform due diligence and verify the information submitted. This means that the contracting officer will have to verify the material costs, the labor costs, the travel costs, and any of the data supplied.
With a variety of procurement routes to choose from, how can one facilitate the selection of the most appropriate construction contract and avoid situations where the owner insists on using a less appropriate one? How do we begin to focus the conversation on training, and updating efforts to create a reduced number of documents (Construction Canada, 2014)? In the next chapter this dissertation will further analyse the trends and investigate how different procurement routes naturally align themselves in certain asset classes in
According to the Case Management Society of America, case management is "a collaborative process of assessment, planning, facilitation, care coordination, evaluation, and advocacy for options and services to meet an individual's and family's comprehensive health needs through communication and available resources to promote quality, cost effective outcomes" (Case Management Society of America [CMSA], 2010). As a method, case management has moved to the forefront of social work practice. The social work profession, along with other fields of study, recognizes the difficulty of locating and accessing comprehensive services to meet needs. Therefore, case managers work with these
Introduction A contract is a voluntary agreement between two people or parties, they can be more and it is enforceable by law. The elements of a business contract are offer, acceptance, and intentions to form legal relations as well as consideration. Contract for cleaning timberland boots Services The services required for the cleaning to be effected are removing loose dirt and debris, brushing each boot with a brush or towel should then follow to remove all the dirt particles.
The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit.
I. My first gut was to say that this was a contract. The website made an offer to send free software to anyone who sent his/her email address. Upon further review, I have decided that this example does not meet the essential elements of a contract as described below.
The projects in today’s world are given a lot of importance and it will continue to grow in the coming years. There are a lot of companies which do not have production, but all of them do have projects. There are a lot of books which have been published on which related to planning and managing the projects. The one of the most important one was published by the author Eli Goldratt in his book ‘Critical chain’. This book basically talks and shows how the application of theory of constraints in the field of project management. The novel is basically based on one of the MBA classes in America where a number of ideas are developed in discussions among the students and the lecturers. The lecturer is basically fighting for a tenure with the president of the university who expects a downturn in the executive MBA. The lecturer who teaches project management has a word with one the senior colleagues and project management was the right topic to teach. There were three students who were placed in the project management team of their company which manufactures electronic products. The students are enrolled in this MBA class along with other students, here they discover a new approach to project management which is known as the
A contract is an agreement which has its specified terms and conditions between two or more parties in which there is a promise to do something in return for a benefit.
The topic of my group (group 4) was “How to totally float through your project for free” and the presentation was held by Roger Goodman who works for PMI NZ and Ernst & Young supply chain management with many years of working experience in many different countries such as Saudi Arabia and China.
The Tender and Contract division of the project would also be taken upon. The contract is a mutual assent by two or more firms/persons, one making an offer and other accepting it. The details which go inside the formulation of a contract would be studied alongside the clauses which bind the parties involved from doing things correctly or to refrain them from doing things
The issue in this case is whether there is a legally binding contract between Roland and Bernie. The things that needs to be considered is whether there is an agreement between Roland and Bernie. If there is an offer and acceptance, then there is an existence of agreement. According to Section 2(a) of the Contract Act 1950, offer can be defines as when one person implies his/her willingness to another in order to acquire their consent. (Abdullah et al, 2011) The person who make the offer is known as ‘offeror’ or ‘promisor’. (Lee and Detta, 2009) An offer can be made in the method of orally, by conduct, writing or by the mixture of these forms. An offer must require an effective communication with offeree. The formation of contract when offeree accepted the proposal. (Dass, 2005)
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration.
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.