Types of contract ppt

What are the different types of procurement contracts? ContractEnforceable by lawAgreement. An example of this is a purchase order: It will establish the price, quantity, and date for the deliverable. Fixed-price incentive fee. An agreement which is enforceable by law is called a contract.

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There is some consideration for it. Their consent is free. Consent is free when it is not obtained by coercion, undue influence, frau misrepresentation or mistake.

Section 2(i) of the Act defines a voidable contract. Where consent to an agreement is caused by coercion, undue infl. A void agreement is not enforceable at the option of either party.

No obligation or right arises from a void contract. They are not covered by the law.

When both the parties have completely performed their respective obligations under the contract , it is said to be executed contract. It means that whatever was the object of the contract has been carried out. In most executed contracts the promises are made and then immediately completed. An executory contract is one which is one in which one or both parties are still to perform their obligations. In such contracts, the consideration is the promise of performance or obligation.

Such controls are future contracts. In executory contracts, the consideration for the promise made is carried out sometime in the future. For example– Delivery and payment are to be made after days. Another good example of an executory contract is that of a lease.

The contract is executory. A unilateral promise is a promise from one side only and intended to induce some action by the other party. But if he carries out the act desired by the promisor, he can hold the promisor to his promise. His act is simultaneously acceptance of and consideration for the promise.

An act done at the request of the offeror in response to his promise is a consideration, and consideration in its. In short there are primarily three types of procurement contracts. Cost-Reimbursable contracts 3. Time and Material contractsThese main types of procurement contracts are further classified as follows.

However there are few types of fixed price contracts that vary a little from this definition based on the nature of the requirement of contract.

Eventually the primary model of cost reimbursable contracts are asking the buyer to pay for the cost incurred by the seller in completing the work. Eventually in time and material contracts, the buyer pays for the seller labor cost as well as additional cost for the material required in the project. Meaning the buyer pays for seller for the effort (number of hours) spent on the project. To summarize, we have seen different types of procurement contracts between the buyer and seller. It does not matter as long as you understand the type of contract and what goes in the contract clearly and work for it.

Also we have seen fixed price contracts are more useful when both the buyer and sell. At the early stages of any construction project, the owner with his engineer or consultant prepares necessary documents for the tender process, which will be included in the contract. These documents are called contract documents. General conditions 2. Special conditions 3. Drawings and specifications 4. Q (bill of quantity) 5. Letter of acceptance 6. One of the characteristics of construction projects is uniqueness. Every project has its particular circumstances, so it’s crucial to select the contract type which suits the project.

Each type has its advantages and disadvantages concerning the owner and the contractor. Unit price contract 3. In this type, the contractor bids a single fixed price for overall activities in the project scope. All risks are assigned to the contractor, and there isn’t any risk carried by the owner. Target cost contract has common features of the lump sum and cost-plus contracts.

This contract is ideal when the. Elements A firm-fixed-price for each line item or one or more groupings of line items. View Type of contracts.

Indicate the type of instrument by entering one of the following upper case letters in position nine— (i)Blanket Purchase Agreements. But a contract collateral to void contract may attain Validity because object of main contract is lawful. Express offer: – It is an offer that is done through words that can be either oral or written.

Implied Offer: – It is an offer conveyed through acting or signs.