Procurement and Contract Management

Posted: October 17th, 2013

Procurement and Contract Management

Name:

Course:

Instructor:

Institution:

Date:

Procurement and Contract Management

In essence a contract can be described as a pact between two or more parties entailing fulfillment of a need or what both parties need from one another. The presence of contract creates a legal obligation between the parties, which can b made by writing or orally (Emanuel, 2006). The parties are put at safety by the contract because it provides legal remedies either expressly or impliedly for the parties involved such that contravention of the contract attracts penalties for the parties involved.

I find the statements as accurate because they provide the parties involved in making the contract. Contracts are used in making offers and accepting the offer. The presence of a contract acts as evidence that the parties, which assented to the contract, are able to rely on the presence of the acceptance or consent to engage in the contract as a form of security. The presence of a contract ensures that the parties involved in the agreement do not harbor ill intentions of committing fraud or deceitfully obtaining something or things that the other party is in possession. This acts as a guarantee that the parties will all fulfill their promises to each other of fulfilling the conditions provided by the contract (Blum, 2011). If one of the parties contravenes the terms provided in the contract the party is able to move to a court of law to seek legal remedies and claim damages from the other party for failure their part of the contract.

In addition, in business the passage of consideration from the promissor to a promisee is usually a sensitive matter because transactions are usually susceptible to fraud. Hence, the presence of a contract ensures that the promissor and the promissee fulfill their ends of the bargain. Moreover, the presence of a contract between parties usually a sign that parties in the agreement have consented to a binding agreement hence the failure of either parties to act according to the terms and conditions provided by the contract. However, contracts must be made by consent from the parties involved and must involve the parties, who are mentally fit. (350 words)

Reference

Blum, B. A. (2011). Contracts. Austin: Wolters Kluwer Law & Business, Aspen Publishers.

Emanuel, S. (2006). Contracts. New York: Aspen Publishers.