3.3 SPECIFIC CONTRACTS & CLAUSES Flashcards
Contracts defined by
Method of payment
Roles/duties parties perform
Rights eg. Licensing agreement
Provision for services eg. Professional service agreement
Standard form contracts and 6 types
Created by industry groups for use by their members
Favour members not contract party
Most Require modification
Often used to without modification to save costs
- Fixed price
- Cost plus
- Unit price
- Construction management
- Design build
- Public private partnership
Professional service agreement
Defines scope of work and expected outcomes
Maybe fixed price, cost plus or percentage of construction costs
Often have limitation of liability clauses that protect the consultant from claims in excess of available insurance coverage
May give owner alternative remedies in event the claim is not covered by insurance
Engineer eg. Commonly use standard form contracts like ACEC31 and should address site inspections, copyright, limitation of liability, termination
Licensing agreements (License, Exclusive license, Grant provision)
License: grant of rights
Exclusive license: licensee obtains exclusive right to use rights granted by licensor
Grant provision: defines scope of license (most important part in license agreement)
Geoscience agreements
Define rights and responsibilities in exploration projects
Takes many forms eg. Joint ventures, limited partnerships
Grubstake agreement: contributions are made to the prospectors exploration costs in return for stake in resources discovered
Options agreement: provide optioned with the rights to purchase land at specified price within specified time frame
Do contracts need to be in writing to be enforceable? Provide eg.
Eg. Transfer of an interest of land
Eg. Contract in which one party becomes a surety (guarantee the debt of another)
