...1) Unilateral contracts require that only one party make a promise that is open and available to anyone who performs the required action, like collecting the reward for finding a lost car. This sometimes applies to advertisements to an extent. Some contracts are: 2) Bilateral contracts work differently because it requires two parties enter into an agreement where both parties promise to do something. However, the elements of either contract remain the same: - Offer by the promisor - Acceptance by the promise - Consideration or support for the offer, like money - Of legal capacity, meaning both parties are free from mental illness or addiction - Lawful terms 3) Express Contracts are stated in clear language. Example: Miguel wants to purchase his first home. He found the perfect place in Pasadena. The contract for purchase was signed and he closed on the home within a month. The elements are specifically stated included offer, acceptance, and consideration. 4) Implied contracts evolve when no written contract is present, but circumstances may cause one person to become unjustly enriched because of their actions or understanding exists. Two types of implied contracts: - Implied in fact - Implied in law Voidable contracts have legal effect and force when it is made, but is liable to be subsequently annulled or set aside by the courts through the process of excision. Circumstances or features that make a contract voidable include (1) non-disclosure of one or more material...
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...The contract type (e.g., fixed-price, cost-reimbursement) is a key consideration in any decision-making because the type of contract may determine the financial impact of the decision. For example, the financial effect of schedule changes varies widely, depending on the type of contract. This article focuses on how the type and attributes of government contracts must be considered to support successful financial performance for both the government and the contractor. Such information will be helpful to new project managers and others responsible for contract performance, as well as to more experienced managers who may benefit from a review of the basics of government contracting. The Federal Acquisition Regulation (FAR) allows a wide variety of contract types, based on the financial arrangement. Broadly speaking, these include fixed-price, cost-reimbursement, time-and-materials (T&M), and letter contracts. The various forms of fixed-price contracts and cost-reimbursement contracts are shown in the sidebars on page 45. According to FAR 16.104, the federal government professes a preference for firm-fixed-price type contracts. Contracts also may be distinguished on the basis of their ordering or execution. Under a traditional contract, the contractor performs a specific statement of work for a specified price or cost. More common today are indefinite delivery types, which may be for definite or indefinite quantities or the requirements of the acquiring activity...
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...Contract Types Contract types are tools in planning purchases and acquisitions that are important for the examination as well as for professional management. There will be several questions on the exam about the different types. One of the important facts to know is the degree of risk for the seller and the buyer that each type of contract contains. This graphic shows the risk levels for each of these types of contract. Figure 16-1. Risk levels for contract types. Each of the contract types has risk attached to it. As we go through these contract types, you need to learn who assumes the most risk, the buyer or the seller. Fixed price/lump-sum contracts In this type of contract, the seller assumes the greatest risk because the price is set. This means that the seller must comply with the contract and provide the service/product for a specific price. If the time it takes to deliver the service/product expands, the seller cannot charge for the extra time. The same would be true if extra materials were needed to deliver the service/product. If this occurs, the seller cannot charge for the extra materials because the price for the contract is already fixed. Incentives can be used with a fixed price contract based on meeting project deliverables or exceeding them. These deliverables could include schedules and costs as two of the measurements for incentives. In addition, some economic adjustment such as cost-of-living increases could be written into a fixed...
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...Types of Contracts [pic] Choosing type appropriate contract type is essential to successful performance under a contract. The type of contract determines the cost and performance risks which are placed on the contractor. There are two broad contract groups--fixed price and cost reimbursement. Within each of these groups, there are various types of contracts which can be used individually or in combination. [pic] Firm Fixed Price Contracts [pic] This type of contract requires the contractor to successfully perform the contract and deliver conforming supplies or services for a price agreed to up front. This type of contract places the most performance and cost risk paid. It if costs them more than they expected, they still get the amount originally agreed upon. If it costs them less, they make more profit. A firm-fixed price contract is suitable for supplies and services that can be described in sufficient detail to ensure complete understanding of the requirements by both parties and assessment of the inherent risks of performance. [pic] Other Fixed Fixed Price Contracts [pic] Within the fixed price contract group you can award contracts with: • economic price adjustment factors to allow for industries where costs fluctuate frequently either up or down • various incentive types which can be used to reward good performance or to impose provisions to deduct for poor performance • price redetermination provisions which permit issuing an order on a fixed...
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...Reasonable Price And Government Contracts Amy Berdine-Roberts Cost and Price Analysis Professor Rafi January 10, 2008 When you first think about fair and reasonable price, you think about the goods that you buy or the services that you use. When shopping for anything, you do not want to feel buyer’s remorse because you are unhappy with the product or service so research is the key. You would shop around to ensure that you are not paying too much. You compare prices and look at the quality and quantity that you will receive. When looking at specific brands and agencies, you see what others say about their product or service. Without this type of research, you could not only pay too much but you may receive sub par services. Especially with contracts you want to make sure the work the contractor does is not only quality work but will also be completed on time and will not cost more than the original agreed upon price. When it comes to government, they also need to shop around and receive fair and reasonable prices for the products they buy and the services they receive. However, it goes beyond that. They not only need to ensure they are getting a fair and reasonable price, but are also using the correct type of contract for the service that is being done. There are numerous types of government contracts; fixed-price, cost reimbursement, incentive, indefinite delivery, time and materials, labor hour and letter contracts. Fixed price contracts are just as they sound. The...
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...Contract Design Decisions: An Empirical Analysis of Federal Contract Characteristics by Craig R. Smith Assistant Professor School of Public Administration & Policy Eller College of Management University of Arizona Tucson, AZ & Deanna Malatesta Assistant Professor School of Public and Environmental Affairs IUPUI Indianapolis, IN As American government expanded from its relatively humble origins, public administrators and managers had to seek out and employ additional methods to meet citizen demands. As a result, in recent decades contracting out services to nongovernmental organizations has emerged as the primary alternative to direct provision by public employees and become an indispensible tool of governance. Moreover, the private, for-profit and nonprofit sectors have been progressively more active in public service delivery to enable governments to meet the changing demands of their constituencies while facing the external challenges imposed by politicians, federal regulations, and reform movements (Milward and Provan 2000). In fact, the term governance is often used to evoke a broad, multi-dimensional approach to service delivery, which stretches beyond the “lonely” public organization (Pierre and Peters 2000; Lynn et al. 2001). Indeed, governmental and nongovernmental organizations often develop mutual dependency in a service delivery or policy domain, which has been conceptualized in various ways including public sector networks, alliances, partnerships, and...
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...Contract Laws Jerry Attric BUS311: Business Law I Instructor: November 10, 2013 Contract Laws Today in this economy and financially unstable period, it is vitally important for an individual, an entity or organization to understand contract laws prior to entering into any form of contract. When looking at the laws of business there are many categories and an extremely broad range of topics. The topic of contracts within business law is extremely fascinating and very important to understand prior to entering into such contracts. “A contract is a legally enforceable agreement between two or more people.” (Rogers, 2012) There are many types of contracts to be aware of and there are numerous steps that are involved within each part of a contract, and must be understood and followed for the contract to be legal and binding. In our modern times people enter into contracts often times without even knowing thay have because there are so many different types of valid contracts. The following is a list of contracts that are entered into by companies and people on a regular basis. Implied, unilateral, bilateral, expressed, quasi, formal and simple contracts. An express contract is “formed by the express language of the parties—the actual words they use in their agreement—and can be either written or oral.” (Rogers, 2012) This particular contract is entered into without any written documentation and is a valid contract. Expressed contracts have several parts including...
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...Time and Material Contracts Scott L. Earle Con 280 - Source Selection and Acquisition of Service Contracts March 12, 2012 Various DAU Faculty from Huntsville, AL Campus Time and Material Contracts Department of Defense (DoD) Contract Officers and Contracting Specialists are tasked with being the stewards of the American taxpayer’s hard earned dollars and it is a responsibility they take personally. Acquisition personnel are tasked with utilizing the proper contract vehicle to procure services, materials, supplies, constructions projects, and countless other items. Contract vehicles are not one size fit all and depending on the circumstance the acquisition personnel will reach into their tool box and choose the correct vehicle to administer the contract. There is a wide selection of contract types available to provide needed flexibility in acquiring the large variety and volume of supplies required by the DoD. The various contract types vary according to the degree and timing of the responsibility assumed by the contractor for the costs of performance, and the amount and nature of the incentive offered to the contractor for achieving or exceeding specified standards or goals. Contract types are grouped into two broad categories; Fixed-price contracts and Cost-reimbursement contracts. The specific contract types range from firm-fixed price, in which the contractor has full responsibility for the performance costs and resulting profit (or loss), to cost-plus-fixed-fee...
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...business day, for a contract (Stanberry, 2009, preface). In order for a business to become part of selling to that enormous market it must first understand the laws, rules, and regulations that govern acquisitions and procurement for the federal government. Discuss the importance of fixed price contract in creating effective, efficient, and accountable acquisition planning: Under a Fixed price Contract. FAR 16.201, the government agrees to pay a specific price (which includes the contractor’s profit) for completed work and delivered products. The fixed price contract is used for the procurement of commercial items as well as services when: * There is adequate price competition; * There is reasonable price comparisons with past purchases of the same or similar products or services made on a competitive basis are available; * Available cost or pricing information permits realistic estimates of the probable performance cost * Performance uncertainties can be identified, and reasonable estimates of their cost impact can be made. The government prefers a fixed price contract because the liability of performing the contract is held by the contractor. And any cost overage or risk concerning the contract will be absorbed by the contractor. There are no limits on what profit the contractor may make. This is solely based on how the contractor manages his cost and if prudent will realize a higher profit. The government uses fixed price contracts in simplified acquisitions...
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...opportunity to explored how these particular types of contracts play a major portion in many aspects of our lives. Adam Lukie I have personally come across several types of contracts in my personal and business life. One example are the contracts that I have between myself and my employer. When I was hired by my company, I signed several contracts such as one stating the stipulations of my employment. The company states its expectations from me as an associate and that I will be compensated for compliance with this agreement. There are was an agreement made between me and the company where i provide them with service and they provide me with compensation. Another contract that I signed was one for the use and protection of electronic communications. This contract states that the communications used at the company such as e-mail, online content, etc. was intended for company use only and that it shall not used for other purposes. The contract is designed to protect company interests and my employment is based on my compliance with this contract. In my professional life I deal with contracts all day. Selling cell-phones, tablets, Internet, TV, and home phones usually requires the customer to sign some form of contract. These contracts fall under the Consumer Law of contracts. Cell phone carriers make money in two ways. They sell prepaid plans, allowing you to pay for your usage in advance. Or, they require that you sign a contract with them, agreeing to pay for a set...
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...Procurement Planning Paper Lee Gomez CPMGT 302 December 14, 2015 Professor Burgess Procurement Planning Paper The needs of a project must be carefully identified, sourced and acquired to have a successful procurement process. Procurement planning is essential to the overall success of a project. It involves identifying the materials and services, finding the suppliers, and properly documenting the transactions. This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical concerns that should be considered when identifying source selection criteria is also included. Finally, the role of risk management in the procurement planning process is explained. The Procurement Planning Process The key tasks associated with procurement management planning are determining what items need to be procured, finding the suppliers that could satisfy the requirements, bidding process, and the approval process. These tasks must be completed step by step in the workplace. “The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it” (Project Management Institute...
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...HND BUSINESS MANAGEMENT COURSE: ASPECTS OF CONTRACTS AND NEGLIGENCE FOR BUS [Type text] Page 1 Tables of contents Executive summary-----------------------------------------------------------------Introduction--------------------------------------------------------------------------Case study 1a Augustine and Christina------------------------------------------1b Augustine and Florence------------------------------------------Case study 2a Richmond consultancy business---------------------------------Case study 3 Catherine and Daniel---------------------------------------------Case study 4a Telephones supplied cannot be modified--------------------4b Telephones supplied can be modified-------------------------Case study 5 Grace and Office Supplies Ltd-------------------------------------Case study 6 Alfred and George------------------------------------------------------Case study 7a Test for a Tortfeasor as an Employee------------------------------7b Test to determine if employee’s act was during employment-Case study 8a Mary and Barnett Hospital-----------------------------------------8b Mary and Joe---------------------------------------------------------8c Mary and Thomas--------------------------------------------------Conclusion---------------------------------------------------------------Reference/Bibliography------------------------------------------------ Pages Executive summary [Type text] Page 2 This report is made of eight sections (case studies)-case...
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...Business law and contracts Introduction There are quite a number of business entity that are lead and regulated by various laws.Theselawsensures that each business operates within its jurisdictions. In running a business, one has to deal with various types of contracts with other businesses or different individuals. Whatever types of businesses that one dealin, understanding of business contracts is an essential part of running a business and making sound agreements that can be defended in a court of law in the case that one party defaults on their original profit. Contracts governance by common law or the Uniform Commercial Code (UCC). A contract can be defined as an enforceable legal agreement undertaken by two or more parties, corporate or individuals that necessarily creates an obligation between the parties to do or not to undertake certain things (Brullote, n.d). In many countries, business and individual contracts are majorly guaranteed by two laws: the Uniform Commercial Code abbreviated as UCC and the common laws each having its distinct jurisdiction. To transact business properly, it is required that one understands both contracts (Brullote, n.d). Common laws contracts are those contracts that are controlled by a set of rules that are established by various states. These are traditionally basedlaws that are set by thelegislature and are always being changed to suit the various changes n business environments. Common law contracts are meant to guide various...
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...The type of contract that a contractor has with his or her client has a direct impact on how a project progresses and approached. There are many different types of contracts that include different criteria for resource utilization, terms, and financial reimbursement. As a contractor, the contract that I would prefer would be a cost reimbursable contract with an incentive fee. A cost reimbursable contract with an incentive fee is a contract that has a financial incentive in key areas of the project to encourage decreased costs or completing the task ahead of schedule (Darnall & Preston, 2013). While other types of contracts have award fees for performance, many of the criteria for the financial award is based on subjective criteria and at the...
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...A stowaway is a person who secretly boards a vehicle, such as an aircraft, bus, ship, cargo truck or train, to travel without paying and without being detected. Stowaways face dangerous situations. Since they are not legally on board, they must sometimes spend days without water or food when traveling by ship, risking death. A much greater risk of death is taken when trying to board an aircraft. Usually, a stowaway tries to jump into an aircraft by hanging on to the airliner's landing gear as the plane takes off, and the force of the wind can easily make a stowaway fall to his or her death. Because people flying on aircraft as stowaways must stay within the landing gear area, they face other risks, such as being crushed in a confined space when the gears retract, falling when the plane is landing, or dying from the heat produced by the engines of the aircraft. Deaths from hypothermia, caused by the extreme cold at high altitudes, or anoxia (lack of oxygen) are also possible and probable. FAA spokesman Ian Gregor said in 2007, that since 1947, there have been 74 known airplane stowaway attempts worldwide. Only 14 of the individuals survived.[1] Stowaways also risk imprisonment, as it is illegal in most jurisdictions to embark on aircraft, boats or trains as stowaways. Airports, sea ports and train stations are typically marked as "No Trespassing" or "Private Property" zones to anyone but customers and employees. Seaports, train stations, and airports often attempt further...
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