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Contract |
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A Contract involves legally binding exchange of promises or agreement between parties or individuals. A contract is most of the time governed by law or legal specifications. Almost all of us sign or make contracts everyday. At times written contracts are formulated, for example while purchasing any kind of property or assets we sign or make Contract.
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Not necessarily we need to formulate written contracts, vast majority of contracts can be made orally, like buying a textbook or having coffee at a shop. As we have mentioned that a contract is a legal bond that two or more parties agree, for any kind of performance, or refraining from performance some specified act(s) in exchange for lawful consideration.
Laws governing Contract, like Civil Law can be can be classified as part of general Law of obligations along with tort, unjust, enrichment or restitution. There are three key elements that common law includes while creating Contract. These are offer and acceptance, consideration and an intention to create legal relations. Where as in Civil Law certain elements vary for example the concept of consideration is not pivotal in civil law. In some contracts agreement is often done under or formalities are compiled under statute of frauds.
A Contract can be formulated or made between any parties for any purpose. In most cases contracts are listed or made in the world of business for work purposes. The usefulness of contract is determined by the changes in the labor market institutions and fundamental changes that are happening in the world of work.
A Contract is characterized by the following:
A Contract owner who is also referred to as the Service Area manager (SAM), Institution Superintendent, or Division Administrator. The Contract owner is in charge of the over all corporate responsibility and accountability to ensure that all agreements are in alignment with the Corporate strategies. The contract owner has the authority to sign payment authorizations and other key and binding documents. The contract owner can delegate the technical and day-to-day operational management of the Contract to one or more subordinate staff. The contract owner provides direction; support and guidance to those engaged in management of procurement and also resolves disputes with Contractors.
There may be one or more contract managers. His duties are limited and are delegated by the contract owner. He predetermines the need for procurement, requests for exceptions to competitive selection, acting as the issuing officer, preparation and distribution of solicitation or contracting documents, Monitoring and review of performance of the contractors and compliance, maintenance of contract files and other duties designated by the contract owner.
In some instances, staff engaged in managing contract, have to report or be accountable to other staff, who are not the contract owner or manager. A series of accountabilities are performed in Contract Management.
The total term of a Contract, including all renewals, cannot exceed six years. All the services enlisted in the contract cannot be executed or performed until the terms and conditions of the contract are in agreement to all the parties involved. Copies of the contract should be distributed to all the parties and once completed should be sent to the Fiscal Management.
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