Chapter 2 Flashcards
Definition of a Contract
“A contract is an agreement to do or not to do a certain thing.” (CC § 1549.)
-It’s an obligation or legal duty enforceable in an action at law
-Contract = Agreement (in SCM)
Elements of a Valid Contract
-Identification of the parties
-Term for the performance or completion of contract
-Encumbrance of funds
-Consideration (must clearly express the maximum amount to be paid and the basis on which payment is to be made)
-Scope and deliverables (The work, service, or product to be performed, rendered, and/or delivered)
-Other general or unique terms and conditions of the agreement
-Signature by a person for each party who is authorized to bind that party
Authority to sign a Contract
A State agency’s authority to contract is limited to those officers who either have statutory authority or have been duly authorized in writing by one who has statutory authority.
-Anyone signing should have sufficient knowledge in the area of contracting and the goods or services being procured.
Audit by State Auditor
When required: All contracts over $10,000
Law/Statue: GC § 8546.7
Nondiscrimination clause
When required: All contracts
Law/Statue: GC § 12990
Audits and access to records
When required: For contracts subject to DVBE goals
Law/Statue: PCC § 10115, et seq. 2 CCR § 1896.60, et seq.
Antitrust Claims
When required: All competitively bid contracts
Law/Statue: GC § 4550, et. seq.
Statement of compliance
When required: Contracts $5,000 or over when not in bid documents
Law/Statue: 2 CCR § 11109
Americans with Disabilities Act (ADA)
When required: All contracts
Law/Statue: 2 CCR § 11109
National Labor Relations Board
When required: All contracts
Law/Statue: PCC § 10296
Drug-free workplace
When required: All contracts
Law/Statue: GC § 8350, et seq.
Progress payments
When required: All contracts where progress payments will be made
Law/Statue: PCC § 10346
Recycled Content Products
When required: All contracts
Law/Statue: PCC §§ 6615, 12201(c), 12205
Termination & Amendments
When required: All contracts
Law/Statue: GC § 11010.5
Expatriate Corporations
When required: All contracts
Law/Statue: PCC § 10286.1