Contract Law Principles

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Questions and Answers

What is an express contract?

A contract with terms stated in words. (correct)

A contract that is implied from the actions of the parties.

A contract formed under duress.

A contract that is only verbal with no written terms.

Which of the following best describes an implied-in-fact contract?

A contract that can only be oral.

A contract that requires notarization to be enforceable.

A contract formed through explicit written agreements.

A contract established by the parties' conduct. (correct)

What must occur for an implied-in-fact contract to be established?

There must be a public notarization of the agreement.

Both parties must provide oral consent.

The plaintiff must have furnished a service or property. (correct)

One party must sign a written agreement.

What characterizes a formal contract?

It is typically sealed with a corporate seal. Signup and view all the answers

Which of the following is true regarding oral contracts?

They may be enforceable if certain conditions are met. Signup and view all the answers

What is an informal contract?

A simple contract with no special form required. Signup and view all the answers

Which scenario could lead to the enforceability of an oral contract?

If the goods are made specifically to the buyer’s order. Signup and view all the answers

In the context of implied contracts, what is a requirement for the defendant?

The defendant should have known payment was expected. Signup and view all the answers

What measure is used to assess procurement efficiency in terms of direct costs?

Percentage reduction in indirect PR costs Signup and view all the answers

Which metric indicates a high level of productivity in procurement operations?

Span of control Signup and view all the answers

What is the range of procurement ROI for world-class procurement organizations?

0.72x to 12.70x Signup and view all the answers

What does a percentage lower in Purchase Operations costs as a percentage of spend indicate?

Enhanced operational efficiency Signup and view all the answers

Which of the following is NOT a metric mentioned for assessing procurement efficiency?

Market share percentage Signup and view all the answers

What does a 32% lower Purchase Operations cost as a % of Spend suggest?

More effective procurement processes Signup and view all the answers

What is a key characteristic of a world-class procurement organization's mission and vision?

Diverse service portfolio Signup and view all the answers

Which of the following represents an indicator of lower costs in procurement?

Fewer direct FTEs per billion dollars direct spend Signup and view all the answers

What is the primary purpose of the Uniform Commercial Code (UCC)?

To provide a uniform law for various jurisdictions regarding goods Signup and view all the answers

What is the significance of UCC §2-201 concerning contracts?

It requires a written contract for sale of goods over $500 Signup and view all the answers

Who qualifies as a merchant under UCC §2-104?

A person with notable expertise or regular dealings in specific goods Signup and view all the answers

What happens when terms are incorrectly stated or omitted in a UCC contract?

The court may still enforce the contract under certain conditions Signup and view all the answers

Which of the following is NOT covered by the UCC?

Service contracts with defined terms Signup and view all the answers

Which role is responsible for the actual creation of tender documents?

Tender Creator Signup and view all the answers

What is one of the main components that needs to be finalized during the tender creation process?

General information Signup and view all the answers

Which document is typically required during the tender preparation?

Instruction to Bidders Signup and view all the answers

Which of the following is NOT typically included in the tender documents?

Marketing Analysis Signup and view all the answers

What role includes responsibilities for both bid opening and technical evaluation?

Tender Committee Signup and view all the answers

What is a necessary requirement for members involved in bidding publication and opening?

Digital Signature Certificate Signup and view all the answers

Which of these is a component of the bid evaluation process?

Technical Evaluation Signup and view all the answers

Which term identifies a special set of terms applied to a specific tender?

Special & Additional Terms Signup and view all the answers

What is the primary purpose of a performance bond?

To protect the owner from contractor's failure to perform Signup and view all the answers

Which statement accurately describes a payment bond?

It ensures subcontractors receive payment for their work. Signup and view all the answers

What is one of the advantages of e-Procurement?

It allows for global visibility of work once uploaded. Signup and view all the answers

Which of the following is NOT a feature of e-Procurement?

Bidders must pay registration fees Signup and view all the answers

What can Subcontractor X do if Contractor ZZ fails to pay them?

Assert a claim against the payment bond Signup and view all the answers

What is the effect of maximum participation in e-Procurement?

It results in reasonable and compatible rates. Signup and view all the answers

How does a performance bond differ from a payment bond?

Performance bonds assure project completion, while payment bonds ensure contractor payment. Signup and view all the answers

Which of the following describes the registration process for bidders in e-Procurement?

Bidders can register at the portal for free. Signup and view all the answers

Study Notes

Implied Contracts

Terms are not explicitly stated in words
To establish an implied-in-fact contract, the plaintiff must have furnished some service or property, expected to be paid, and the defendant knew or should have known that payment was expected, and had a chance to reject the service or property and did not.

Formal vs. Informal Contracts

Formal contracts require a special form or method of formation to be enforceable.
Formal contracts are usually sealed with a corporate/ company seal.
Informal contracts, also called simple contracts, are not required to have any special form.

Written vs. Oral Contracts

Written contracts are generally preferred.
Oral contracts may be valid if:
- They are confirmed in writing
- Goods are made specifically to the purchaser's order
- Both parties behave as if a contract exists
- The party against whom the contract is being enforced admits in a legal proceeding that a contract exists

The Uniform Commercial Code (UCC)

Covers US domestic transactions for “goods”.
All US states have codes which model the UCC, except for Louisiana, which has “legislative law” modelled after French law.
Does NOT apply to service contracts; however, may apply to contracts for mixed goods and services.
Goods can include equipment or inventory; and consumer goods are covered.

Merchants

A merchant is someone who routinely deals in the particular goods involved, or who appears to have special knowledge or skill in those goods, or who uses agents with special knowledge or skill in those goods.
The UCC frequently holds a merchant to a higher standard of conduct than a non-merchant.

Statute of Frauds

UCC §2-201 requires a writing for any sale for goods worth more than 500(NewUCCis500 (New UCC is 500(NewUCCis5,000).
Contracts for Goods over 500(500 (500(5,000): The writing must be signed by the defendant.
Enforceable Only to Quality Stated: Under the UCC, a court may enforce a bargain even though one or more terms were left open.

Payment Bond

Designed to provide security to subcontractors and materials suppliers to ensure payment for their work, labor and/or materials on the project.

e-Procurement

Tender notices are uploaded and available on a website
Firms can get registered at the portal free of cost
Bidders/Indenters need to obtain Digital Signature Certificates (DSC) from any certified agency.
Tender offers are submitted online
Tenders are opened inline
All accompanying documents are scanned and submitted online after certification by digital signature

Advantages of e-Procurement

All the documents pertaining to work will be available on the portal for ready reference to contractors
Wide publicity of Works, because the moment the work is uploaded, it becomes Global
No chances of biasing of officials of the municipality towards any agency
Maximum participation of agencies
Due to maximum participation, rates will be reasonable and compatible
No need to visit the office
Roles are defined as required – Tender Creator, Publisher, Bid Opener & Evaluator

Tender Management

The process involves tender creation, tender publishing, providing clarifications, corrigendum creation and publications.

Tender Creation

Preparation of tender documents
Finalization of dates
Formation of committees
Define general information such as tender type, class of contractor, validity period, duration

Tender Documents

Forms
Instruction to Bidders
Declaration by the Bidder
Conditions of the Contract
Technical Specs
Drawings
Spl & Addl Terms & Conditions
Spl & Addl Conditions of the Contract
Qualification Criteria
BOQ (item rate % rate tender)
Financial Bid
Proforma for Documentary Evidence

Tender Committees

BID opening
Technical Evaluation
Financial Evaluation
Tender Committee which includes all the members involved in publishing/bid opening should have a DSC

Tender Publications

These require DSC
Should be done online by filling up the form
DSC should be attached if available/later
Password by mail

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Description

Explore the fundamental concepts of contract law, including different types of contracts such as implied, formal, informal, written, and oral agreements. Understand the nuances and legal enforceability of each type, helping you grasp how contracts are established and recognized in various situations.