Contract writing and depended risks management, is a very large topic related with the contract law which includes volumes of documents, legal briefs, and court decisions. So, we try to explain the main subjects in contract writing and we hope that this presentation will give you general idea about main principles of it and how to hedge the risks can be occurred before and after signing the contracts… We will follow these steps given below : I. II. III. IV. V. VI. Introduction Protective contract language & risk management Developing risk standards (Standard provisions) Other contract provisions Methods for resolving conflicts Special contract provisions for governments.
Valid contracts typically require the mutual assent of two or more persons who are substantially equal in awareness and barganing power, someone who makes an offer and someone accept the offer, and purpose that is socially approved. To write a clear, concise business contract draft, we have to be sure to include some certain key elements. These key elements are given as :
Key concepts in contract writing
i. The parties to the aggrement Identify who’s involved in the agreement. Usually, this will be apperent from the terms of the agreement, but if there is any doubt, you must go ahead and identify each individual by residence or other descriptive terms in addition to names. ii. Mutual agreement Means, there is a “meeting of the minds “ as to what the parties of contract want to out of the contract. While legally enforceable contracts can be based on unspecified intentions, or handshake agreements. Generally, these types of contracts have no place in state or local government outsourcing (and need to be carefully avoided). But in private sector business contracts, sometimes, handshake or oral agreements can be more enforceable than the writing ones. iii. Consideration of Agreement Describes what benefit or gain each party will receive. Consideration involves the exchange of something of value btwn. the contracting parties. It can come in a number of forms, including performance or doing something you are not legally obligated to do, forbear or to perform. Additionally, many contracts (e.g. involving property, large gifts, or an exchange of resources above certain values, etc.) also require appropriate formalities if the contract is to be considered enforceable. For example, some contractual arrengements require the receipt of something of value as consideration for the promise that has been made. ITMM – Outsourcing Fuat Berk Kırlı & 12 / 12 / 2003 Oguzalp Yücel 1
Terms Detailing the nuts and bolts of the agreement. This is the critical part of the any business contract draft. Before starting to write an agreement, it is usually best to prepare a list of who is doing what and when. Basically, it must be written down each party’s obligation under the agreement. And also, the agreement must be written in an understandable manner for accomplishing the function of providing a permanent record of exactly what the deal is. Contracts in general and the terms specifcally, are most readily understood when written with relatively short sentences using familiar, short words.
Execution Getting the the necessary signatures. All parties must sign the agreement Execution of an agreement shows there has been a meeting of the minds and agreement has been entered into. If each party individual , the signature is usually sufficient for execution. In some instances, it’s desirable to have the signature witnessed, if there is doubt an individual’s identity.
Legality of a contract Legality of a contract refers to whether a contract involves the performance of an illegal act or is contrary to public policy or statue. Such contracts are illegal and therefore unenforceable. Contract legality is the area where most state and local government contracts fail. This is the case because agency...