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CE 4221 Tutorial 1-Answer

The document discusses the formation of contracts in 4 examples: purchasing milk, a TV, a car, and awarding a contract to build a bridge. For each example, it identifies the key elements of a legally binding contract - an offer, acceptance, and consideration - and discusses the implied or documented terms and conditions. For purchasing milk, the offer is taking it to the cashier, acceptance is the cashier accepting payment, and the terms are governed by consumer laws. Awarding a bridge contract involves a client advertising for contractors, issuing tender documents, submissions being offers, and negotiations resulting in a final contract document.

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91 views2 pages

CE 4221 Tutorial 1-Answer

The document discusses the formation of contracts in 4 examples: purchasing milk, a TV, a car, and awarding a contract to build a bridge. For each example, it identifies the key elements of a legally binding contract - an offer, acceptance, and consideration - and discusses the implied or documented terms and conditions. For purchasing milk, the offer is taking it to the cashier, acceptance is the cashier accepting payment, and the terms are governed by consumer laws. Awarding a bridge contract involves a client advertising for contractors, issuing tender documents, submissions being offers, and negotiations resulting in a final contract document.

Uploaded by

afzal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CE 4221 Civil Engineering Practices, Quality and Legislation

Tutorial 1: Contract Law

1. Consider and discuss the method and terms of formation of a contract when you purchase
a carton of milk

–What is the offer?

–What is the acceptance?

–What is the consideration?

–What are the Conditions of Contract?

2. As above for purchasing a TV set


3. As above for purchasing a car
4. As above for awarding a contract to build a major bridge.

Hints
Remember, a (legally binding) contract requires…..

• An offer
• An Acceptance
• Consideration

Plus

Terms and Conditions (T’s & C’s)

– Specific (documented) or

– Implied.

1
Purchasing a carton of milk:
• Milk advertised for sale with a price of Rs. x a carton = “invitation to treat”
• When you take the milk to the cash register, you are “offering” to buy the milk
• When the cashier accepts your cash (= the “consideration”), he/she is “accepting” your
offer
• The T’s &C’s of that purchase “Contract” are governed by Consumer Law and other
Acts (eg Fair Trading)
• Implied terms – “fitness for purpose”, warranty (printed “use by date” on the product).
Also, no added substances, eg…..

Purchasing a TV
• TV advertised for sale with a price of Rs x = “invitation to treat”
• When you take the TV to the cash register, you are “offering” to buy it
• When the cashier accepts your cash (“consideration”), he/she is “accepting” your offer
• The T’s &C’s of that purchase “Contract” are governed by Consumer Law and other
Acts (eg Fair Trading)
• Implied terms – “fitness for purpose”, warranty terms, operating instructions, etc
• Note about extended warranties. Do they really offer any value beyond your normal
rights under Consumer Law?

Purchasing a Car
• Car advertised for sale with a price of Rs. x = “invitation to treat”
• When you “haggle” (= negotiate) with the salesman on the price, you are engaging in
“counter offers”. Final agreement is reached when the last “offer” is “accepted”, from
either side.
• When you “haggle” with the salesman on accessories, etc, you are debating the T’s and
C’s
• When you finally reach an agreement, it is all put in writing and when you both sign the
“papers”, you will have a legal contract
• Note “oral” versus “written” contracts.
• Infamous Quote : “An oral contract is not worth the paper its written on”

Purchasing: Building a Bridge


• Client will decide the type of contract to use for the project
• Client will advertise for suitable contractors to “register” their interest
• Short list of tenderers created
• Tender documents issued (including drawings, specifications, technical reports, General
and Special Conditions of Contract)
• Tenders submitted – the “offers”
• Negotiations – may amend various aspects
• Tender accepted and all documents “wrapped up” in a document called “The Contract”
• Only what is in “The Contract” is applicable to the contract.

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