Aspects of Contracts

Topics: Contract, Arbitration, International arbitration Pages: 12 (2381 words) Published: February 1, 2013
.1 Explain the importance of the essential elements required for the formation of a valid contract in the following situations: P1.1 1. Temporary daily wages Worker doing work and following instructions from the supervisor

2. Tenant staying in an apartment

3. Contractor working on project site

4. Customer in an Amusement Park

5. Buyer and Seller of Consumer Product like Body Lotion

Guidelines: You need to specify the essentials of the contract like written terms, verbal, implied etc, terms & conditions, validity, the area of application, acceptance & intent in each situation to achieve P1.1

1.2 Discuss the impact of the contract on the parties who have signed it and also on the others P1.2

Guidelines: You need to explain how the signing of the contract between the site Owner and contractor has impact on the two parties and also on others like subcontractors, customers, site inspectors etc regarding factors like Health & Safety, compensation, non-compliance etc

1.3 The following is a part of contract between contractor and Owner of a site


THIS CONTRACT made this 21st day of October, 2011, by and between Nakeel LLC hereinafter called “Owner” and AL Tawir hereinafter called the “Contractor.”

WITNESSETH: Mr. Imran Hussain and Mansoor Khan

That the Owner and the Contractor, for the considerations hereinafter named, mutually agree as follows:



The Contract Documents shall consist of the Construction Rehabilitation Contract, Conditions of the Contract (General, Supplementary and Other Conditions), Attached Sketches and Noted Photos, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement and Modifications issued after the execution of this Agreement; these form the Contract and are as fully a part of the Contract. The Contract represents the entire and integrated agreement between the parties and supersedes prior negotiations, representations and agreements, both written and oral.

In the event of a conflict among the Contract Documents, the Documents shall be interpreted according to the following priorities:

First Priority: Manufacturer’s Most Recent Installation Instructions

Second priority: Construction/Rehabilitation Contract

Third Priority: General Conditions of Contract, 2000 version

Fourth Priority: Addenda to Specifications or Drawings (with later date having greater priority)

Fifth Priority: Work Write-Up dated ______________

Sixth Priority: Drawings (Plans) dated _____________ “

Explain and analyze the terms in the above contract with reference to their meaning and effect P1.3

1.4 Explain how you can make the situation in Worker-Supervisor situation more effective in implementation and water tight from legal point of view M1

Task 2

2.1 Apply the elements of contract in the given situations given below: P2.1

a) The Contractor has not trained the workers on the site in operating the heavy Equipment and there is evidence of the workers not using the equipment due to the lack of training

b) The small Grocery shop in Bur Dubai has been noticed selling expired products to customers at 50% discount

2.2 The contract awarded and signed by the Owner and the Contractor has this performance time clause and the penalty clause for non-Performance as given below: P2.2


The services of the Contractor are to commence on 21st October 2011 and shall be completed by 20th October 2013. As time is of the essence, the Contractor will, if these services are not completed within this time period, be assessed the amount of $175 (one hundred and seventy five dollars) for each day the work is not substantially completed after 1st November_2012 unless an extension is granted by...
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