Implimentation of Contract Clauses: Presentation by Sri. S. Sreekumar GM (Engg), Ner

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IMPLIMENTATION OF CONTRACT

CLAUSES

Presentation
by

SRI. S. SREEKUMAR
GM(ENGG), NER
Dt. 09-09-11 1
 Contract is a legally enforceable agreement
between two or more parties with mutual
obligations, which may or may not have elements
in writing.
 The elements of a contract are mutual assent
and consideration.
 The remedy at law for breach of contract is
usually “damages” or “monetary” compensation.

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Agreement: -
 Every promise and every set of promises
forming the consideration for each other is an
agreement.
 A person makes a proposal or offer. When it is
accepted by other it becomes a promise.
 Promise cannot be one sided. Only a mutual
promise forming consideration for each other is
agreement.
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The Indian Contract Act 1872

 This act is applicable to whole of India (except the


state of Jammu and Kashmir).

 It is well settled that while the Indian Contract Act


merely provides certain basic conditions under which a
contract becomes binding on the parties, it does not lay
down any particular form or condition of a contract.
The parties to the contract may agree to particular form
or condition or mode in which the contract is to be
executed.
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 Consideration: - When at the desire of the
promisor, the promisee or any other person has
done or abstained from doing, or does or
abstains from doing or promises to do or to
abstain from doing, something, such act or
abstinence or promise is called a consideration
for the promise .

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 All agreements are contracts if they are made
by the free consent of parties competent to
contract, for a lawful consideration and with a
lawful object and are not hereby expressly
declared to be void.
 Acceptance of contract conditions must be
absolute.
Acceptance of offer is complete only when it is
absolute and unconditional.
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Steps involved in contract
Proposal and its communication.
Acceptance of proposal and it’s
communication.
Agreement by mutual promises.
Contract
Performance of contract

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Essential requirements of a valid contract
 Offer and its acceptance.
Free consent of both parties.
Mutual and lawful consideration for
agreement
It should be enforceable by law.
Parties should be competent to contract
Object should be lawful
Certainty and possibility of performance
Contract should not have been declared as
void under contract Act or any other law. 8
Implimentation of Contract clauses

 Studying the agreement in toto.


 Understanding about the contract clauses.
Communication of proposal/revocation/
acceptance are vital to decide validity of a
contract. A communication is complete only
when other party receives it

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Obligations of the department
 Signing agreement and providing copy of
agreement to the contractor.
Handing over of site.
Acceptance of time and progress chart.
Supervision and Measurement of work.
Payment of bills.
Principle Employer.
Approval of Drawings and sample of materials.
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Any contract have basically three Dimensions
 Time.
 Quantity.
 Quality.
External Environment

 Safety and security rules


 Labour laws
 Others
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Time
 Time is the essence of the contract – clause 5 .
 Submission of Time & Programme chart and
mutual acceptance.
 Extension of Time.
 Compensation for Delay – clause 2.
 Completion Certificate and Completion
Plans- Clause 8.
 Payment of final bill – Clause 15.
Defects liability Period – Clause 17. 12
Quantity
 Measurement of work done – Clause 6.
 Payment of Intermediate Certificate and Final
bill.
Payment on Account of Increase in prices of
materials – Clause 10C, 10CA, 10CC.
 Deviation/Variations Extent and pricing –
Clause 12.
 Payment of Advances – Clause 10B.
 Tools & plants – Clause - 18 13
Obligations of the department
 Signing agreement and providing copy of
agreement to the contractor.
Handing over of site.
Acceptance of time and progress chart.
Supervision and Measurement of work.
Payment of bills.
Principle Employer.
Approval of Drawings and sample of materials.
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Quality
 Performance Guarantee – Clause 1.
 Security Deposit – Clause 1 A.
 Determine the contract – Clause 3.
 Work to be executed in accordance with
specifications, Drawings, orders, etc – Clause 3.
 Action in case work not done as per
specifications – clause 16.
 Contractor liable for Damages, defects during
maintenance period – Clause 17.
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Safety & Security
 Safety code.
Contractors liability and Insurance of works –
clauses 46 .
 Insurance for staff.
Labour laws
Contractors labour regulations – Clause 19.
 Minimum wages act.
Others
Statutory laws . 16
Dispute Resolution and Arbitration. – Clause
-25

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