Contract management and contract law Essay Example | Topics and Well Written Essays - 3250 words

Contract management and contract law - Essay Example In a capitalist world, the law of contract essentially forms a major portion of the society we live in. It is the realm of deliberate agreement and collaboration, to be more specific, contract deals with the activities like exchange and bargain. The purpose of the act of Contracts is to create possibilities, or to assist this action. It helps two or more parties in the function of arranging for the future plans by shielding the anticipations that take place from the process of bargaining. In the process of forming a contract the parties require a lawfulstructure which will provide them with a conventional, consistent, steadyfoundation for theconcealedcategorization of their affairs. Agreements between two or more parties turn into a contract with the intervention of law. A legal contract comprises of five essential elements without which the contract is referred to as invalid. In the following sections we will discuss the various scenarios related to the benefit of the procuring part y as well as we will discuss about the Sale of Goods Act, INCOTERMS and the transfer of risk to the supplier from the viewpoint of the UK Contract Act. Answer 1 The procurement process in my organization must make sure that the five vital tenets of contract are met while entering into a contract with other parties. The five tenets of contract are- 1. Offer- Offer and acceptance are the essential elements of a contract. Before going in depth of the definition of offer and acceptance, let us first recognize the parties involved in the framework of offer and acceptance. ... The five tenets of contract are- 1. Offer- Offer and acceptance are the essential elements of a contract. Before going in depth of the definition of offer and acceptance, let us first recognize the parties involved in the framework of offer and acceptance. The structure of offer and acceptance involves an offeror who puts forth the offer and an offeree, to whom the offer has been made by the offeror. Thus now we can look at the definition of the offer and acceptance framework, which states that an offer is a statement or proposal by an offeror to an offeree with an intention to make lawful relations. An offer cannot be considered simply as an incitement to negotiate or bargain. To make the communication effectual and complete, the offer must be received and accepted by the offeree. In a buying and selling contract, to make an offer legitimate, the following aspects must be clearly defined: Who is the offeror? Who is the offeree? What is the consideration? What is the area under discu ssion of the offer? How many central themes does the offer entail (quantity)? Any communication would be considered as an offer if it signifies the expression on which the person making the offer is ready to create a contract (like setting the price of a product intended to be sold), and provides a clear hint that the offeror wishes to abide by the terms if those are acknowledged by the offeree. Offer can also be made to the general public, for example a marketer offering discount to the people visiting his shop. This kind of offer is generally known as unilateral offer where the offer is addressed to a large number of people and their actions indicate their acceptance of the