Contract Law

Question 1

a legally binding agreement has to meet these following agreements

Answer 1

agreement between parties

capacity to enter into a contract

genuine intention to form a binding legal relationship

supported by consideration

must have lawful intent and not be contrary to public policy

ceratin formalities may be required

Question 2

Agreement

Answer 2

there has to be at least 2 parties to contract, but there can be no contract without agreement between the parties, have to agree on the same thing

Question 3

twin elements of an agreement

Answer 3

offer and acceptance

Question 4

letters of intent

Answer 4

prior to the contract the parties sometime exchange communications
express the intention to enter a contract

Question 5

duress, undue influence & fraud

Answer 5

the parties have to to voluntarily enter into the contract if a person induced into contract under duress or undue influence the contract is not valid

Question 6

breach by owner

Answer 6

if they do not make proper payments as required by the contract if the contract does not expressly state

Question 7

breach by contractor

Answer 7

the contractor does not perform the work to accordance with all of the terms of the contract, the contractor fails to meet the specifications

Question 8

termination of contract by perfromance

Answer 8

when all parties have satisfactorily completed all of their obligations under the contract

Question 9

termination of contract by agreement

Answer 9

contracts under seal and written contracts can be ended effectively by an oral agreement between the parties

Question 10

arbitration

Answer 10

is a system for settlement of disputes without resorting to the courts

arbitration has a long history as a means of resolving commercial disputes especially when the specialized knowledge of the arbitrator is important

people cannot be forced to use arbitration to settle their disputes

even if parties commit to using arbitration, it is impractical to try to force them to keep to their agreement when they are reluctant to use arbitration

Question 11

change order

Answer 11

agreement between the owner and the contractor to make certain change in the work for an agreed price or method of payment such as unit price, cost plus, or time and materials, the. change order may also include an agreed adjustment in the project in the contract time

Question 12

provisions for the interim release of the holdback allow the owner to release from the major lien fund on a subcontractors work _____ days after substantial completion of the sub contractos work when no liens have been registred in connection with that work

Answer 12

45 days

Question 12

builder’s liens

Answer 12

they require the owner to maintain a lien fund by holding back a percentage of all payments to a contractors for a certain time

Question 12

statutory holdback is what percentage?

Answer 12

10% of the value of work done

Question 12

open bidding

Answer 12

the open form of competitive bidding is the most commonly used for public projects

Question 13

criteria

Answer 13

at both the pre-qualifiaction and bid closing stage the selection of the builders/contractor is usually based on price, reputation, past performance experiences safety and financial status of BONDING

Question 14

finacial status and bonding

Answer 14

a contractor that is financially unstable is a risk to the owner and could jeopardize successful completion of the project

Question 15

the bonds she told us to highlight with no definition

Answer 15

BID BONDS
PERFORMACE BONDS

Question 16

labour and material bonds

Answer 16

is a commitment by the surety to pay for labour and materials furnished to the contractor for use on the project

Question 17

payment bonds

Answer 17

the principle would be the owner and obligee would be the contractor. this type of bond used when a contractor has some concerns about the owners ability to pay for the work

( this arrangement is contrary to the situation in all the other bonds we have considered )