Standard Form Contracts

Question 1

What are standard form contracts?

Answer 1

Pre-prepared contracts made by one party and presented to the other on a ‘ take it or leave it basis ‘- little or no room for negotiation

Question 2

Two advantages of standard form contracts

Answer 2

• judicially considered: specific contractual terms have been interpreted by the courts.
• increase efficiency: common usage allows terms to be more easily recognised and understood by contractors and owners

Question 3

Two disadvantages of standard form contracts

Answer 3

• inflexible to emerging developments

- terms may favour one side of the industry spectrum