Difference Between Contract And Construction Contract

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The general rule is that a party is bound by all the terms set out in a contractual document if they have signed it. This applies whether or not they have read the terms or understood them. In Polygram Records Sdn Bhd v. Search & Anor where the Visu Sinnadurai J. stated that: “…The general principle of law, of course, is that a party who signs a written contract is bound by the terms of the contract, except in the limited cases where fraud, undue influence, or misrepresentation may be established. This rule is so strict that even if a party to a contract has not read the contents of a contract, he is held to be bound by its terms…” Contracts contain two types of terms, namely “conditions” and “warranties”. Condition is the more important…show more content…
The construction contracts are governed by the general elements and rules of contract involving performance and discharge of duties and the Contract Act 1950. Construction contracts include carrying out construction operations, managing others during project implementation and providing manpower for the operation of construction projects. The principle of offer and acceptance supported by consideration to make a legally binding contract applies as the construction contracts are governed by the Contracts Act 1950. Construction contract very often includes the use of standard form of construction contract, such as PAM, IEM, CIDB and FIDIC standard forms of contract. One of the contract form used in the Malaysian construction industry is the PAM Form of Contract 2006. It is used for all private sector building projects. The PAM 2006, contain various terms and condition. One of them is about notices. PAM 2006 states that from time to time the Architect has to give various notices to the contractor when managing the project. The related clauses are as…show more content…
Today the use of e-mail is very fast, easy and cheapest method of communicating information. But is it a valid or legal means of giving or sending out notices? As mentioned clause 36.1 of PAM 2006 clearly stated that all written notice must be given or sent by hand, ordinary mail or registered post; or facsimile transmission. Since e-mail is not mentioned anywhere in the PAM 2006 form of contract as method of serving notice, there is a risk that the notice is not valid which may render it to be ineffective as such the Contractor is not obliged to
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