Recognizing Contract Risk and Opportunities
For the purpose of this discussion, the following definitions will be defined by The People’s Law Dictionary (Hill, 2008): •
Contract: an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. •
Breach of contract: failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act which shows the party will not complete the work ("anticipatory breach"). Breach of contract is one of the most common causes of law suits for damages and/or court-ordered "specific performance" of the contract •
Specific performance: the right of a party to a contract to demand that the defendant (the party who it is claimed breached the contract) be ordered in the judgment to perform the contract. Specific performance may be ordered instead of (or in addition to) a judgment for money if the contract can still be performed and money cannot sufficiently reward the plaintiff. •
Ambiguity: when language has more than one meaning. If the ambiguity is obvious it is called "patent," and if there is a hidden ambiguity, it is called "latent." If there is an ambiguity, and the original writer cannot effectively explain it, then the ambiguity will be decided in the light most favorable to the other party. •
Agreement: any meeting of the minds, even without legal obligation. 2) In law, another name for a contract including all the elements of a legal contract: offer, acceptance, and consideration (payment or performance), based on specific terms.
Span Systems (Span) had a six million dollar contract agreement to manufacture banking software for Citizen-Schwartz (C-S). Span...
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