Standard Form Of Contract
Presented by: Hazrat Gul Totakhil
Student: M2014036
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Contract Defined
An agreement between two or more parties representing a promise to be performed for consideration
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Necessary Parts of a Typical
Construction Contract
O Parties identified
O Parties make promises that constitute an offer
O Both parties sign the contract
O Both parties receive consideration:
O Contractor – payment for work done
O Owner – use of the completed project
O Parties of the contract must have the LEGAL
AUTHORITY to negotiate a contract
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Contractual Relationships
O Agreement between the OWNER and
CONTRACTOR is the primary construction contract O There are other contractual relationships which exist
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Standard form of
Contract
O A standard form of contract purports to
represent the terms of the bargain between the parties thereto. It purports to embody the consensus between the parties. In short, it purports to be an “agreement enforceable by law”.
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The practical need for printed form contracts O To follow the principles laid down in the Afghanistan
contract Act to the letter, one would require each and every clause in an agreement to be discussed, negotiated and then finalized, once a consensus is arrived at.
O People enter into contractual relations with one another all time. It is not practically possible to negotiate the terms and condition of each and every one of these contracts.
O Commercial and business sense dictates that people spend only so much time on negotiation as would be warranted having regard to the nature and the value of the contract.
O Men of commerce have found that certain conditions are implicit in every contract, having regard to the trade usages or customary practices in existence. Yet, in order to avoid needless disputes or litigation, they prefer to have these spelt out in writing . This has given rise to the printed
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form.
Purchaser of insurance, for example, normally agree only on the price, the term, the monetary limits of
Student: M2014036
1
2
Contract Defined
An agreement between two or more parties representing a promise to be performed for consideration
3
Necessary Parts of a Typical
Construction Contract
O Parties identified
O Parties make promises that constitute an offer
O Both parties sign the contract
O Both parties receive consideration:
O Contractor – payment for work done
O Owner – use of the completed project
O Parties of the contract must have the LEGAL
AUTHORITY to negotiate a contract
4
Contractual Relationships
O Agreement between the OWNER and
CONTRACTOR is the primary construction contract O There are other contractual relationships which exist
5
Standard form of
Contract
O A standard form of contract purports to
represent the terms of the bargain between the parties thereto. It purports to embody the consensus between the parties. In short, it purports to be an “agreement enforceable by law”.
6
The practical need for printed form contracts O To follow the principles laid down in the Afghanistan
contract Act to the letter, one would require each and every clause in an agreement to be discussed, negotiated and then finalized, once a consensus is arrived at.
O People enter into contractual relations with one another all time. It is not practically possible to negotiate the terms and condition of each and every one of these contracts.
O Commercial and business sense dictates that people spend only so much time on negotiation as would be warranted having regard to the nature and the value of the contract.
O Men of commerce have found that certain conditions are implicit in every contract, having regard to the trade usages or customary practices in existence. Yet, in order to avoid needless disputes or litigation, they prefer to have these spelt out in writing . This has given rise to the printed
7
form.
Purchaser of insurance, for example, normally agree only on the price, the term, the monetary limits of