Terms and Concepts Flashcards
Contract
A contract is an agreement between parties with binding legal and moral force, usually exchanging goods or services for money or other considerations.
A court will not decide terms of a contract for parties
it will rule on whether there was an agreement to terms and what constitutes that agreement.
In determining whether there is a valid contract
court may consider testimony; written evidence, notes, emails, letters; actions taken in the performance of disputed contract & other factors
Letters of Intent
not binding contracts.
If contain the consideration and requires performance, court may find it a valid contract, esp if parties sign off on the letter or did work
The required elements of a contract are:
- Offer & Acceptance
- Consideration
- Mutuality of Obligation
- Legality of Purpose
- Definiteness
- Competency of Parties
Express Contracts
when formal elements for a contract exist. written or oral.
Implied-in-Fact Contract
when some of formal elements occur thru conduct vs express words
Fixed-Price Contracts
when possible to predict costs of contract perf & when reasonable to ask the contractor to cover all costs.
generally used when org can specify what it wants and that no uncertainties anticipated
Cost-Reimbursement Contracts
when there is uncertainty, unknown cost risks, and unreasonable to ask a contractor to assume risks alone.
Circumstances when cost-reimbursement contracts are appropriate:
contractor’s cost accounting system is adequate
uncertainties cannot be estimated;
personnel can determine if contractor is using inefficient or wasteful methods
Definite delivery contracts
when a specific requirement quantity and delivery date have been established.
Indefinite delivery contracts
time of delivery is unspecified but est. by the procur. pro during K perf
most important source of power to contract
statutory law, administrative rules, and regulations.
Express authority
means the principal expressly gives permission, in writing, to agent to for principal.
Implied authority
permits ]agent to do ]incidental or customary actions necessary to perform expressly authorized acts.
