Contracts

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Questions and Answers

What are the four essential elements needed to form a binding contract?

Agreement, consideration, intention to create legal relations, and external evidence of agreement (correct)

Agreement, consideration, external evidence of agreement, and a notarized document

Agreement, consideration, external evidence of agreement, and performance

Agreement, consideration, external evidence of agreement, and an exchange of goods

What are the four essential elements needed to form a binding contract?

Agreement, consideration, external evidence of agreement, and intention to create legal relations (correct)

Agreement, consideration, internal evidence of agreement, and intention to create legal obligations

Agreement, consideration, external evidence of agreement, and intention to create legal obligations

Agreement, consideration, external evidence of agreement, and intention to create legal rights

What are the four essential elements needed to form a binding contract?

Agreement, consideration, intention to create legal relations, and external evidence of agreement (correct)

Agreement, consideration, external evidence of agreement, and a letter of intent

Agreement, consideration, intention to create legal relations, and a letter of intent

Agreement, consideration, external evidence of agreement, and a collateral warranty

What are the four essential elements needed to form a binding contract?

Agreement, consideration, external evidence, and intention to create legal relations Signup and view all the answers

What is the purpose of a letter of intent?

To confirm to a successful tenderer that the contract will be awarded to him/her Signup and view all the answers

What is the purpose of a letter of intent?

To confirm to a successful bidder that the contract will be awarded to him/her and to get him/her to start work before the contract is signed Signup and view all the answers

What is the purpose of a letter of intent?

To confirm to a successful tenderer that the contract will be awarded to them Signup and view all the answers

What is the purpose of a letter of intent?

To confirm to a successful tenderer that the contract will be awarded to them Signup and view all the answers

What is the purpose of a collateral warranty?

To protect the interests of the primary contractor Signup and view all the answers

What is the purpose of a collateral warranty?

To protect the interests of the primary contractor Signup and view all the answers

What is the purpose of a collateral warranty?

To protect the interests of the primary contractor Signup and view all the answers

What is the advantage of design and build procurement options?

The client appoints the professional team Signup and view all the answers

What is the Joint Contracts Tribunal?

A group that produces standard forms of contracts, guidance notes, and other standard documentation Signup and view all the answers

What is the purpose of the Joint Contracts Tribunal?

To produce standard forms of contracts, guidance notes and other standard documentation for use in the construction industry Signup and view all the answers

What is the Joint Contracts Tribunal?

An organization that produces standard forms of contracts, guidance notes and other standard documentation for use in the construction industry Signup and view all the answers

What is the purpose of a collateral warranty?

To protect the interests of the primary contractor Signup and view all the answers

What is the aim of the Fair Payment Principals?

To ensure transparent and proper payments are made to main supply chain members within 30 days Signup and view all the answers

What are the Fair Payment Principals?

A set of guidelines to ensure transparent and proper payments are made to main supply chain members within 30 days Signup and view all the answers

What is the Fair Payment Principals?

A set of rules to ensure transparent and proper payments are made to main supply chain members within 30 days Signup and view all the answers

What is the Joint Contracts Tribunal?

An organization that produces standard forms of contracts Signup and view all the answers

What is the Fair Payment Principals?

An agreement that ensures transparent and proper payments are made Signup and view all the answers

What is Management Contracting?

A procurement method in which the client appoints the designer Signup and view all the answers

What is the Freedom of Contract?

The legal principle that allows parties to enter into agreements without interference from the courts or government Signup and view all the answers

What is the latest JCT Contracts?

JCT Contracts 2016 Signup and view all the answers

What does the JCT amend the wording of the new contracts to introduce?

Prompt assessment of Loss and Expense Signup and view all the answers

Study Notes

Freedom of Contract is the legal principle that allows parties to enter into agreements without interference from the courts or government.
The four essential elements needed to form a binding contract are external evidence of agreement, agreement (offer & acceptance), consideration, and intention to create legal relations.
In the construction industry, procurement methods can be divided into two stages: design and build.
Design and build procurement options have the advantage that the client appoints the professional team, but the disadvantage that the contractor has a direct relationship with all consultants.
Management contracting is a procurement method in which the client appoints the designer, and the management contractor lets the work to various contractors.
A letter of intent is an acknowledgement of serious intent to do business.
It sets out key contract terms, authorizes contractor to carry out work up to a specified value, and is not a substitute for a formal agreement.
The purpose of a letter of intent is to confirm to a successful tenderer that the contract will be awarded to him/her and to get him/her to start work before the contract is signed.
A contractor's tender includes some of the conditions of the contract; if there is any doubt as to the exact documents which make up the contract, problems can arise at contract signature stage.
A letter of intent is a document in which a contractor agrees to do work on a project based on the terms of the contract.
If the employer wants to change the terms of the contract, the parties will not agree on the terms of the contract.
If there is no contract, the contractor is not liable for damages.
A collateral warranty is a supplemental contract in which a third party, such as a funder or purchaser, agrees to protect the interests of the primary contractor.
The primary contractor can only enforce the terms of the collateral warranty if the contract specifically states that they have the right to do so.
A standard form of building contract is a form of contract containing conditions which are applicable, or can be made applicable by the use of alternatives, to a wide range of building projects.
The Joint Contracts Tribunal was established in 1931 and for over 70 years has produced standard forms of contracts, guidance notes and other standard documentation for use in the construction industry.
The latest JCT Contracts 2016 include a payment provision which will simplify the current payments provisions.
The Fair Payment Principals aim to ensure transparent and proper payments are made to main supply chain members within 30 days.
The JCT will amend the wording of the new contracts to introduce prompt assessment of Loss and Expense.