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The legal issues that relate to the formation of contracts - Coggle…
The legal issues that relate to the formation of
contracts
The key components of a performance management framework are:
Targets that indicate pass or fail, for example, ‘satisfaction levels of 85% or higher
Consequences, that is what happens if the measures are not achieved or if they are exceeded
(KPIs) that the supplier needs to achieve in contract delivery,which is what is measured
Format of contracts
The
contract particulars
section sets out some of the specific variables. It is a mechanism for
writing terms and conditions without having to amend clause by clause
The
terms and conditions
provide the detail ( make up the main body of the contractual documentation)
The recital
, which provide the context
Definitions and interpretation
set out specific meanings
The articles
, which are the very basic agreement: a summary
The schedules set out project
-specific detail either as designed by the purchaser (KPIs for
example) or as submitted by the supplier (e.g. pricing)
KPIs
improving
performance over time, elements could be transferred to other contracts;
deteriorating
performance should be addressed to bring it up to requirements;
stable
performance could mean that opportunities for improvement are being missed, so this should be investigated
KPIs can affect
a potential supplier's ability to actually perform the contract; they may simply not be able to resource next-day delivery for instance
the price at which the supplier is willing and able to perform the contract.
a potential supplier's interest in the contract; they may be able to resource it, but do not believe they could do so cost effectively, or that they have other more profitable opportunities
The measurement of KPIs helps a buyer to identify if the required standard is being met consistently, and whether performance is stable, improving or deteriorating over time
Requirements of a contract
Consideration i.e financial value
Intention i.e mutually agree
Acceptance i.e this can be implied if the buyer uses the goods before payment
Capacity
Offer
There are six ways in which an offer ceases to exist:
withdrawal (sometimes called revocation), lapse, death of the person making the offer, rejection (including counter-offer), failure of conditions and acceptance.
Hire (short term)
End of period: what happens to the asset at the end? Who owns it?
Extending the scope: is it possible to add two additional photocopiers to an existing
contract?
Maintenance: The hire contract may make provision for maintenance to be part of the hire
package
Reducing the scope, what if one less photocopier is needed?
Leasing ( Long Term)
In the contract of bailment
, the ownership of the goods remains with the Bailor and only the possession transfers to the bailee