Scribd
Upload
91 views9 pages

Agreement + Enforceability A + E C: Contractor

A contract is a legally binding agreement between parties that is enforceable under the law. There must be an offer and acceptance, consideration, lawful purpose, capacity and consent to form a valid contract. Key elements include offer, acceptance, intention to create a legal relationship, consideration, competence and consent. Common types of contracts include cash contracts, build-operate-transfer contracts, service contracts, sales contracts, purchasing contracts, partnership agreements, and lease agreements.

Uploaded by

Amit Chaturvedi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
91 views9 pages

Agreement + Enforceability A + E C: Contractor

A contract is a legally binding agreement between parties that is enforceable under the law. There must be an offer and acceptance, consideration, lawful purpose, capacity and consent to form a valid contract. Key elements include offer, acceptance, intention to create a legal relationship, consideration, competence and consent. Common types of contracts include cash contracts, build-operate-transfer contracts, service contracts, sales contracts, purchasing contracts, partnership agreements, and lease agreements.

Uploaded by

Amit Chaturvedi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 9

Agreement + Enforceability

A + E = C

The word contract can be defined in short as an agreement between
the parties enforceable under the law. A contract is a legally binding
agreement between the parties identified in the agreement to fulfil all
the terms and conditions outlined in the agreement. A prerequisite
requirement for the enforcement of a contract, amongst other things,
is the condition that all the parties to the contract accept the terms of
the claimed contract. One who is in charge of the project is known as
the Employer. One who agrees to execute or perform is known as the
Contractor.
There must be an offer

There must be unqualified acceptance of the offer

There must be an intention to create legal relationships

Every contract should be supported by lawful consideration.

The parties must be competent to enter into a contract.

Free & genuine consent:
Consent is said to be free when it is not caused by (i)coercion,
(ii)undue influence, (iii)fraud, iv)misrepresentation or
(v)mistake.

Possibility of performance:
An agreement to do an impossible act is in itself void.


A sent B the plans and specifications for the
complete electric lighting system for a new
factory. B replied that she would do the
work for Rs. 450000. A announced that he
hereby awarded the contract to B but that
certain fixtures were to be changed and
relocated and other revisions made in the
plans. Is B bound to go through with the
project? Why?
Contracts can be broadly classified as
Cash Contract, and BOT Contracts. In
cash contract the consideration for the
agreement is payment in cash to the
contractor as per the terms and
conditions of the agreement by the
Employer. In a Built Operate and
Transfer type of project, the contractor
invests the capital cost and consideration
is recovery rights like toll, rent etc. over
an agreed period. There are various
models in Built Operate Transfer type
contracts. Some of these are BOT, BOOT,
BOLT.
Service contract could be an agreement to provide agreed kind
of services to the customer. Service delivery management
ensures that the service is being delivered as agreed, to the
required level of performance and quality. In civil engineering a
routine maintenance contract for sweeping cleaning of Roads,
Flyovers, security at site etc are relative examples of the service
contractor
Sales Contract is a contract between a company (the Seller)
and a Customer that you are promising to sell products and/or
services. The customer in return is obligated to pay for the
product/services bought.
Purchasing Contract is a contract between your company (the
Buyer) and a Supplier who is promising to sell you products
and/or services.

Partnership Agreement may be a contract, which formally
establishes the terms of a partnership between two legal
entities such that they regard each other as partners in a
commercial arrangement.
Lease Agreement is generally an agreement related to rights to
enjoy property for certain period as per the terms and
conditions of the agreement. A standard consideration is the
agreed Lease rent. Typical example will be renting a flat,
Advertisement permits etc
Divestiture is the disposition or sale of an asset by a company.
A company will often divest an asset, which is not performing
well, which is not vital to the company's core business, or
which is worth more to a potential buyer or as a separate
entity than as part of the company.
Owners
Make site available
Owner-supplied materials
Design responsibility
Timely approvals
Not to interfere with method of execution
Owner supplied facilities
Issue change orders
Duty to disclose superior knowledge
Owners discretion exercised reasonably
Engineers
Prepare design, specifications and drawings
Prepare bid documents
Prepare cost estimate
Assist in procurements
Oversee execution and maybe inspection
Contractors
Build the project according to specs, time, budgets
Comply with laws and regulations

You might also like