Categories for Contract

Impact of the Recession on Construction Contractors Essay

Impact of the Recession on Construction Contractors Essay

The current crisis in the world’s financial system has left the construction industry facing its toughest challenges for a generation. Salaries are falling; job cuts are predicted to reach 400,000 in England alone; and the impacts look set to get much worse before they get better.

No country is immune from the impact of this and the UK, and much of the rest of the world, is already in, or about to enter a recession. Even buoyant construction markets such as the United Arab Emirates (UAE) are starting to feel the effect, with construction growth rate expected to slow from 20% to 15% in 2009 (Al Mal Capital).

The United Nations (UN) predicts world economic output will shrink by as much as 0.4% in 2009 (UN’s World Economic Situation and Prospects Report, 2009).

These are serious times, however, the industry needs to be prepared to contribute to the recovery by retraining workers, maintaining the highest of standards of quality and supporting innovation. Construction professionals must not lose sight of their commitment to issues of sustainability, health and safety, ethical business practices and improved building standards.

These will future-proof the industry and allow it to grow after the economy recovers.

Companies seeking to find an extra edge in an increasingly competitive marketplace are likely to employ greater innovation as they look to become more efficient. This could have far reaching benefits for the industry in the future, where innovation has never been more vital.

Construction Output It is clear that construction is in for a period of deflation. Forecasts suggest that there will be a 7% decline in output over the next three years, however, this figure is heavily contingent on Government spending coming through as planned (Construction Products Association).

In the second quarter of 2008 new order figures were at their lowest level since 2004; 14% below the average last year. Housing orders were down 30%, private industrial orders by 36% and commercial orders by more than £1bn from 2007 (Construction Products Association).

A rapid decline in private work has been partly propped up by more public sector spending, however the outlook for the private sector over the next few quarters is set to get worse. The Olympics will prop up the industry to a certain extent but the cessation of office development will have a much greater effect.

Overall, even if all public sector funding was spent next year, the construction industry in 2009 would still see the largest percentage of fall in output since the early nineties, when over 500,000 left the industry. This has been brought about by the sharp fall in private sector investment in construction – offices, retail, entertainment, as well as private house building.

Public Sector Spending The Government’s decision to bring forward £3bn of capital spending on infrastructure was cautiously welcomed by the construction industry (Pre-budget statement, November 2008).

Given the extremely high levels of borrowing that the Treasury is expecting over the next few years, there is a risk that Government will fund later debt repayments with cuts in capital spending on construction further down the track.

There is also a risk that delays in the Government’s existing build programmes will lead to increased under-spend. Programmes such as the Building Schools for the Future Programme have already fallen behind schedule, and reports suggest that this is as a result of bureaucracy rather than lack of funding.

Business Finance and Loss of Confidence According to the Confederation of British Industry (CBI), more than half of British firms have seen a decline in the ease of access to capital since the onset of the credit crunch; 30% of businesses have been, or expect to be refused new credit; and 78% expect business conditions to be worse next year.

The Government must urgently take steps to unblock the financial markets and improve the flow of capital to business.

The fiscal mitigation measures that were recently announced by the Chancellor (Pre-budget statement, November 2008) were not sufficient to address the underlying loss of confidence facing all UK businesses (and people).

More innovative ways could be investigated by Government to help the industry survive, such as providing credit insurance; relaxing bonding requirements on public projects; setting up project bank accounts; and providing tax breaks/concessions for sustainable construction R&D. At present, the latter has effectively ground to a halt largely as a result of the deeply entrenched uncertainty that abound.

Jobs & Loss of Skills Almost 400,000 jobs in the construction sector in England could be lost over the next two years (assuming GDP shrinks by 2.2% in 2009 and rises by 0.75% in 2010). It is predicted that the worst affected area will be London, where 23% of workers are expected to be made redundant (Public and Corporate Economic Consultants for the Local Government Association).

On the other hand, Eastern Europeans are responding to the downturn in the market by returning home, and this has eased the severity of the job situation in many instances.

Given the forecasts for construction output in 2009, it could be assumed that jobs in the public sector may offer more security than those in the private sector. This reinforces the need for Government to establish how an accelerated public spending package will be implemented. It is essential that the government makes sure timetables don’t slip, and that it does what it can to speed up deal flows and bidding times.

Through no fault of its own, the Construction Industry, in particular the house-building Industry, is having to dramatically re-structure and down-size merely to survive. The loss of technical resource and therefore expertise has been considerable and there are already signs that an upturn in the fortunes of the UK economy will not see these people return.

This is a real concern, particularly as the science and technology that underpins UK sustainable construction is becoming even more complex and at a time when we need experienced people if we are to meet our sustainability objectives. Furthermore, it is not something that can be addressed overnight by short-term training and/or education.

Procurement It has been reported that the credit crunch is likely to reverse the industry’s trend towards negotiated contracts and partnering. Instead, there could be a swing back towards single-stage, lowest bid tenders aimed at achieving the lowest possible outturn cost.

While single-stage tendering may be seen as a quick fix during the economic downturn, this does not take the long-term view, nor adequately consider best value for money. It does however provide a more risky financial environment which is likely to become a fertile breading ground for claims and liquidations as contractors cut their profits to secure work in a decreasing market.

Partnering has proved itself as the most efficient way of undertaking all kinds of construction work including new buildings and infrastructure, alterations, refurbishment and maintenance. Indeed the figures show that that in the four years from 2001 to 2005, £700m of public money was saved, and the potential for two and a half billion in savings, would have been feasible had best practice been adopted across the board.

When times are hard, best practice is at its most crucial to successful business.

Fraud An unexpected knock-on effect of the credit crunch has been a dramatic rise in worldwide construction fraud. Evidence suggests that the average construction company’s loss to fraud has increased by 69% in the last year (Kroll Global Fraud Report), driven largely by tough economic conditions.

A total of 890 senior executives participated in the worldwide survey, which covered 10 industries, with just over one-quarter based in Europe. More than 95% of the construction companies surveyed said they had suffered from corporate fraud in the past three years – up by 77% from last year’s survey.

Most frequent types of fraud occurring in the construction industry include theft of physical assets or stock, financial mismanagement, management conflict of interest, and corruption and bribery.

Companies will need to be even more vigilant than usual to reduce fraud in the construction industry.

Sustainability Opinion is divided about the impact of the credit crunch on the sustainability agenda.

A recent survey from the UK Green Building Council (UK GBC) suggests that while the conventional building industry suffers, the sustainable building sector is experiencing growth. Asked whether the financial crisis has impacted on their organisation in tackling sustainability, 56% of UK GBC members said sustainability had become a bigger focus. Only 18% said the credit crunch has had an adverse effect on efforts to address sustainability.

On the other hand, a survey of small-medium sized contractors suggests that tough government targets on sustainable construction are being missed, as buildings fail to achieve the standards set by the Code for Sustainable Homes (National Federation of Builders). The survey revealed that contractors appeared to be quite knowledgeable about the driving issues and regulations for sustainability, but in over half (53%) of projects tendered for, sustainability was not a client requirement.

Either way, it is important that new buildings, not least those procured by government, are of the highest possible environmental standards. Green building can be at the heart of a low-carbon economic recovery, boosting growth and creating green collar jobs. This is particularly true in existing homes and buildings, where we need a massive programme of refurbishment to cut carbon, reduce energy bills and produce more comfortable places to live and work.

By continuing to build using sustainable technologies the built environment will be preserved for future generations, and a proven record in sustainable design will be invaluable in gaining new contracts in the growing sustainable market.

Education and Training The future success of the construction industry depends on the availability of skilled professionals.

The credit crisis poses a significant threat to the number of students enrolling in graduate construction courses. Students may be apprehensive about pursuing a career in construction in this unstable climate. This would result in a loss of specialist skills, which in turn would hinder the recovery and future development of the industry.

Sandwich courses could be at particular risk because of the lack of available placements available. Many companies are reducing the number of placements they have for students or not taking on any at all. This could result in a reduction in the number of places available on the courses because they can not guarantee work experience placements.

Apprenticeships in the UK house-building industry have also suffered as a direct result of the credit crunch. However, opportunities still exist in the bigger public sector infrastructure projects such as schools, hospitals, railways and roads.

As a result of these risks the Government is working with Construction Skills to try and secure as many positions as possible for students. A new taskforce is being created to ensure that construction training is as effective as possible, and apprenticeship funding will also be increased to over £1 billion to try and prevent skill shortages (Department for innovation, Universities & Skills).

For professionals already within the industry, there is research to suggest that individuals with specialist skills or training could potentially gain a competitive advantage in the current economic climate (Chartered Institute of Management). The research predicts that professional qualifications could result in an additional £152,000 in lifetime earnings. It also suggests that a working knowledge of sustainable building and other innovative methods will be a particular advantage, with major projects on the horizon requiring an extensive skilled workforce in these areas.

It is important for employers to train and encourage further development if they want to secure the future of the construction industry. This will ensure that their workforce is properly trained in up-to-date techniques and will put them in a stronger and more competitive position to win new contracts when market conditions improve. Although it may be inevitable for some to make financial cuts to survive, it is crucial to maintain a constant number of new innovative minds that will allow the industry to recovery and continue to grow.

Aspects Of Contract Essay

Aspects Of Contract Essay

Task: 1.1: Explain the importance of the essential elements required for the information of a valid contract?

Offer

A valid offer identifies the bargained-for exchange between the parties and creates a power of acceptance in the party to whom the offer is made. The communication by one party known as the offeror to the another party called the offeree

b) Acceptance

To constitute a contract, there must be an acceptance of the offer as noted above. Until the offer is accepted, both parties have not assented to the terms and, therefore, there is no mutual assent.

Offeree in a manner invited or required by the offer. Whether an offer has been accepted is a question of fact. The effect of acceptance is to convert the offer into a binding contract.

To form a contract it is necessary that there is a party capable of contracting and a party capable of being contracted with on the other side. In other words, to enter into a valid, legal agreement, the parties must have the capacity to do so.

Consideration

No contract will exist without sufficient consideration due to agreement with the other two party has agree with the term and condition as well.

Mutual Assent

There must be mutual assent or a meeting of the minds on all negotiated terms between the parties and on all the essential elements in terms of the contract to form a binding contract.

Intention to create legal relation

In some jurisdictions, the parties must also have a present intent to be bound by their agreements. It is not necessary that the assent of both parties be given at the same time. Also, it is not necessary that communication of the assent be simultaneous.

Task 1.2: Discuss the impact of different types of contract? A bilateral contract is an agreement between at least two people or groups. A bilateral contract is enforceable from the get-go; both parties are bound the promise. For example, one person agrees to wash the other’s car in return for having his/her lawn mowed. Acceptance of the offer must be communicated for an agreement to be established. A unilateral contract is one where a party promises to perform some action in return for a specific act by another party, although that other party is not promising to take any action. Acceptance may take effect through conduct and need not be communicated

Task 1.3: Analyse terms in contracts with reference to their meaning and effect?

Terms of contract set out duties of each party under that agreement. Generally, the terms of a contract may be either: Wholly oral, wholly written and partly oral and partly written. Terms are to be distinguished from statements made prior to the contract being made.

Express terms

When a contract is put down in writing, any statement appearing in that written agreement will usually be regarded as a term, and any prior oral statement that is not repeated in the written agreement will usually be regarded as a representation, due to the assumption

Implied term

These are terms that courts assume both parties would have intended to include in the contract had they thought about the issue. They are implied on a “one-off” basis. Two overlapping tests have been trade used to ascertain parties’ intention. Business efficacy test: terms must be implied to make contract work.

There are terms which the law will require to be present in certain types of contracts (i.e. not just on “one-off” basis and sometimes irrespective of the wishes of the parties).

Task 2.1: Apply the elements of contract in given business scenarios?

Offer can be seen from the case when Tam’s college offers admission to it student who under take s the vocational qualification.

Acceptance can also be seen from the student when they agree to bound by the school regulations. Consideration is when the student promise to act in certain way. This is particularly important where the agreement involves a promise to act in a particular way in the future.

Task 2.2: Apply the on terms in different contracts?

Conditions

These are the most important terms of contract. Serious consequences if breeched. Innocent party can treat contract as repudiated (and thus is freed from rendering further performance of contract) and can sue for damages. Description in contract of term as “condition” is not necessarily determinative of question whether term is condition. Courts tend to search for evidence that parties really intended term to be such.

Task 2.3: Evaluate the effect of different terms in given contract? Conditions are so important that without them one or other of the parties would not enter into the contract. Consequently, to make a condition falsely, or to breach a condition, is viewed so seriously that the wronged party will be entitled to treat the contract as void, voidable or at least rescinded.

Where the term is a warranty, the wronged party will only be able to seek monetary damages for any loss suffered.

Task 3.1: Contract liability in tort with contractual liability?

The non-breaching party has a duty to mitigate damages. If it does not do so, its damages will be reduced by the amount that might have been avoided by mitigation. In employment contracts, the employee is under a duty to use reasonable diligence to find a like position.

Liquidated Damages

A liquidated damages provision will be valid if (i) damages (ii) the amount agreed upon was a reasonable forecast of compensatory damages. If these requirements are met, the plaintiff will receive the liquidated damages amount even though no actual money damages have been suffered. If the liquidated damages amount is unreasonable, the courts will construe this as a penalty and will not enforce the provision.

Task 3.2: Explain the nature of liability in negligence?

The primary function of the Law of Torts is to provide remedies to claimants who have suffered harm, loss, or an infringement of rights. The harm includes physical injury to persons or property, damage to persons’ reputations or financial interests, and interference with persons’ use and enjoyment of their land. However, just suffering such a loss does not necessarily mean the law will provide a remedy; a claimant must show that the person committing the tort owed them a duty of care and that the tort caused the loss.

Task 3.3: Explain how a business can be vicariously liable?

The company is liable when the manager is under the control of the employer that the employer tell the employee how to the work and when to the work. the work that the employee does forms part of the general business of the organisation. There is a contract of service between the organisation and the employee.

Daniels v Whetstone Entertainments Ltd [1962]

A nightclub bouncer forcibly ejected Mr Daniels from the premises following a disturbance. Once outside, the bouncer assaulted him.

Task 4.1: Apply the element of the tort of negligence and defences in different business situations?

Negligence is an important tort that covers a wide range of situations where persons negligently cause harm to others. In order to succeed in an action for negligence, it is necessary for a claimant to establish the following three elements:

1. The defendant owed the claimant a duty of care.
2. The defendant breached that duty of care.
3. Reasonably foreseeable damage was caused by the breach of duty.

Task 4.2: Apply the elements of vicarious liability in given business situations?

Employers are vicariously liable for
Employee acts authorized by the employer
Unauthorized acts so connected with authorized acts that they may be regarded as modes (albeit improper modes) of doing an authorized act.

There is normally rarely an issue as to whether a given act falls within the first category The difficult cases involve assessing the connection between the act and the employee’s employment.

Bazley established that the connection between the employment and the tort contemplated in the second branch of the Salmond test had itself to be addressed in two steps: The Court must first examine “whether there are precedents which unambiguously determine on which side of the line between vicarious liability and no liability the case falls.”

If the prior case law does not clearly suggest a solution, then the Court is to resolve the question of vicarious liability based on a policy analysis directed at ascertaining whether the employer’s conduct created or enhanced the risk that the tort would occur.

Task 4.3: Discuss three methods you can use to apply elements of tort properly in a work a place?

CONTROL

One of the traditional explanations of vicarious liability is that the employer should be vicariously liable since the employer controls the activities of her employees.

The relationship between the parties

As duties in tort are fixed by law, the parties may well have had no contact before the tort is committed.

Unliquidated damages

The aim of tort damages is to restore the claimant, in so far as money can do so, to his or her pre-incident position, and this purpose underlies the assessment of damages. Tort compensates both for tangible losses and for factors which are enormously difficult to quantify, such as loss of amenity and pain and suffering, nervous shock, and other intangible losses..

LIST REFERENCE

Atiyah P S — Introduction to the Law of Contract (Clarendon Press, June 1995) ISBN:

Beale/Bishop and Furmston — Contract — Cases and Materials (Butterworth, October 2001)

Cheshire/Fifoot and Furmston — Law of Contract (Butterworth, October 2001) ISBN:

Cooke J — Law of Tort (Prentice Hall, May 1997) ISBN: 0273627104

Team Weekly Reflection Essay

Team Weekly Reflection Essay

Compare and contrast common law contracts and the UCC Article 2 with your team. Your discussion should include the topics you are comfortable with, the topics you struggled with, and how the weekly topics relate to application in your field.

Write a 350- to 1,050-word paper detailing the findings of your discussion.

Law – Business Law
Discuss the, “Legal Issues in Cyberspace” excerpt in Section 24-5 of Ch. 24, and Section 24-6, “Copyright Infringement,” of the text. Discuss the topics you are comfortable with, the topics you struggled with, and how these issues relate to application in your field.

Write a 350- to 700-word paper detailing the findings of your discussion.
Try to do everything in moderation when you enter college for the first time. This means that you should not party too hard or work too hard during your experience. Have a lot of fun, but make sure that you understand you are going to college to learn and expand your possibilities for employment.

This document of LAW 421 Week 5 Team Weekly Reflection comprises:

Business Law and Order

Compare and contrast common law contracts and the UCC Article 2 with your team. Your discussion should include the topics you are comfortable with, the topics you struggled with, and how the weekly topics relate to application in your field.

Write a 350- to 1,050-word paper detailing the findings of your discussion.
Law – Business Law
Discuss the, “Legal Issues in Cyberspace” excerpt in Section 24-5 of Ch. 24,
and Section 24-6, “Copyright Infringement,” of the text. Discuss the topics you are comfortable with, the topics you struggled with, and how these issues relate to application in your field.

Write a 350- to 700-word paper detailing the …

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Try to do everything in moderation when you enter college for the first time. This means that you should not party too hard or work too hard during your experience. Have a lot of fun, but make sure that you understand you are going to college to learn and expand your possibilities for employment. Law – Business Law

Discuss the, “Legal Issues in Cyberspace” excerpt in Section 24-5 of Ch. 24, and Section 24-6, “Copyright Infringement,” of the text. Discuss the topics you are comfortable with, the topics you struggled with, and how these issues relate to application in your field.

Weekly Reflection: Common Contracts Essay

Weekly Reflection: Common Contracts Essay

In a typical person’s lifetime they will encounter many situations where they will enter into a contract with someone else. There are many different types of contracts that we may enter into, some knowingly and even some unconsciously. Buying a car with financing is a type of loan, entering into a new work place, and even getting a haircut is a type of contract.

Common Contracts

Contracts to acquire goods, material, equipment or other tangible things Contracts for the acquisition of services Memorandum of Understanding, Memorandum of Agreement or Interagency Agreement Service Agreement

Employment Contracts

Kristin works for a distribution company.

On a daily basis she assists the company in setting up numerous contracts. With many of the vendors her company has Net 30 terms. This means that the company has entered into a contract with their vendor that they will take ownership of the product, and pay the receipt for this bill in 30 days. The company then turns around and sells the products to retail stores with the terms set up for each individual customer.

Some are Net 30, and some are pay on receipt. Pay on receipt means that the company will send out the products and the retail outlet is responsible for paying when the items reach the store. Both Kristin and Susan have entered into employment contracts with the companies that they are currently with. Susan’s employer has the right to terminate her position if she does not meet expectations or if her position is no longer needed.

Kristin’s employer can only terminate her position if she does not meet expectations. Included in Kristin’s contract were an expected employment period and the compensation of relocation costs. However, if Kristin terminated her own employment prior to the employment period, she is responsible for repaying the compensation. A promissory note is something that many people encounter in their lives. When you finance a car loan you agree to pay a specific amount in a specified time period, and with a percentage of interest. As students we have encountered a promissory note for our financial aid. We sign contracts that show we understand we are responsible for the repayment after graduation. A lesser known and yet still common contract that we may enter into daily is a haircut, or a service agreement with your car.

When you sit down to get a haircut you have entered into an agreement that you will pay this amount for this service. And breaking that contract could lead to an interesting talk with the local PD. When you get an oil change you enter into an agreement with the mechanic, much the same way as the haircut. Knowing and understanding the types of contracts that we may enter into is important. When in business being ignorant could cause issues with a customer, or a vendor which could lead to the result of a loss of revenue. In your personal life it could lead to that interesting chat with the local PD, either outcome is uncomfortable and completely avoidable.

References
http://cms.bsu.edu/about/administrativeoffices/contractsoffice/commontypesofcontracts http://smallbusiness.findlaw.com/business-contracts-forms/common-business-contracts.html Sean P. Melvin; the Legal Environment of Business. A Managerial Approach: Theory to Practice; Chapter 8: Contracts for the Sale of Goods; McGraw-Hill Company (2011)

Contract and Chou Essay

Contract and Chou Essay

The case scenario under review by our team includes a contract law situation involving a board game company and a game inventor. Big Time Toymaker (BTT) is a board game company which develops, manufactures, and distributes board games, and Chou is the name of the inventor of a new strategy game. In this scenario, what began with a payment made from BTT to Chou for exclusive negotiating rights for 90 days, ended in a change in management at BTT, leading to their company no longer having interest in distributing Chou’s game.

Several questions will be asked about the validity of the terms agreed upon by the parties involved, including at what point did the parties have a contract, and what role does the statute of frauds play in this contract? Our objective is to analyze the case scenario, including the previously stated questions, and provide the answers to those and other questions pertaining to the scenario and contract law. Question 1 At what point, if ever, did the parties have a contract?

There was mutual agreement between Chou and BTT via verbal agreement, and a subsequent email verifying that an agreement had been tentatively reached.

According to the terms of distribution between Chou and BTT a contract was only valid if formalized in writing. An argument may be made that three days prior to the 90 day time limit a mutual agreement was reached and valid via an E-contract law. There was mutual assent between both Chou and BTT. The argument for the other side will state there was never a formalized written contract from either Chou or BTT, only an email with a subject heading stating Strat Deal.

Is the email a valid contract? Question 2 What facts may weigh in favor of or against Chou in terms of parties’ objective intent to contract? Facts show that BTT sent an email with a subject heading of Strat Deal with information stating that Chou and BTT have reached an agreement. The writing states that after months of no response from BTT and with no management in place the company no longer wishes to distribute Chou’s intellectual property. Chou was in compliance with BTT at all times regarding issues pertaining to Strat.

Chou will allege that there was a contract between himself and BTT that was of mutual assent and under E-contract law the emails were valid. Question 3 Does the fact that the parties were communicating by email have any impact on your analysis in questions 1-2 above? According to CA Civil Code 1624, b 3, a, online contracts are endorsable even if writing is required by the statute of frauds. Communication of contracts is valid under E-contract law. There is no impact on analysis made of above stated questions because of online communication. Question 4 What role does the statute of frauds play in this contract?

A key factor in any contract is acceptance, and in this case a verbal agreement had been reached three days before the exclusive negotiation right was expired. Chou then said he was going to draw up the contract. Big Time Toymaker (BTT) then sent Chou an email outlining all of the things that they had agreed upon that would be included in the contract. Seeing the email, Chou then assumed that this was the contract to be enforced and did not respond to BTT. Even though Chou received the email, he did not respond to it, thereby giving Chou the defense that silence is never acceptance.

However, in E-contact law dictated by CA Civil Code 1624, b, 3, a, it says that online contracts are endorsable even if writing is required by the statute of frauds. In addition, the “Click On” or “Click Wrap” agreement clause states that these agreements are enforceable since the opportunity to read and acknowledge was given. The statutes of frauds do play a part in this contract due to the Uniform Commercial Code requiring that the statute of frauds applies to any contract for the sale of goods for $500 or more.

However, the exact amount of “Strat” units that Big Time Toymaker (BTT) will sell or at what cost of each unit is unclear to the reader, it was described in detail in the email BTT sent to Chou. Question 5 Could BTT avoid this contract under the doctrine of mistake? Explain. The new management at BTT cannot avoid this contract under the doctrine of mistake because a mistake was not made by both Chou and the old management team. The mistake by Chou was accepting the email outline of the contract terms as an actual contract agreed to by both parties.

Scienter applies to Chou in this case by accepting a seemingly legitimate contract. Would either party have any other defenses that would allow the contract to be avoided? The change of management brought about individuals bound to the same company as the old management team was, therefore, scienter applies to the new management team in privity. The draft sent from Chou and received by BTT is a negotiable instrument. BTT thereby becomes a holder in due course. The inaction of BTT after the draft was sent is in violation of the UCC requirement that all offers are to be open for a reasonable period of 90 days.

Chou was under the impression that a contract had been made before that 90 days had expired. Chou has real defense as well as personal defense due to breach of contract and fraud. Question 6 Assuming, arguendo, that this e-mail does constitute an agreement, what consideration supports this agreement? By law, statute of frauds would support this agreement. Due to the terms, there cannot be a lawsuit that can be upheld on particular contracts or arrangements, except if it is written and signed by the authorized party or representative.

Under the statute, certain kinds of contracts have to be in writing in order to be enforceable in a court of law (Contracts: Statute of Frauds, 2013). The writing also has to be signed by the person who is held responsible for the contract or by that person’s agent. To evade the justification of the Statute of Frauds, one would need to make sure the contracts are in text and signed by the other party; so, if the opposing party does not hold his or her end of the agreement, one would gain from that particular party. Question

Assuming BTT and Chou have a contract, and BTT has breached the contract by not distributing the game, discuss what remedies might or might not apply. It is obvious BTT’s manager did not think clearly about protecting BTT from liability. He carelessly wrote the emails, and his careless actions put BTT at risk. This led Chou to believe that this e-mail was meant to replace the earlier notion that he should draft a contract. Although the word contract was not ever used in the e-mail, it said that all of the terms had been agreed upon.

The compensation would be awarded to Chou by the court in a civil action due to the wrongful conduct, being the breach from the other party, BTT. If the contract is breached by BTT, Chou will be granted equitable relief by the court, which comes in the form of specific performance, injunctive relief, or reformation. Monetary damages could also be in effect, in which they can be compensatory, resulting from a loss due to nonperformance. Also, consequential, which are indirect but to be expected from non-completion.

Restitution would also take place that would be equivalent to total the party has been unfairly supplemented by the non-breaching party, and liquidated, which damages are a preset value rendering from the agreement. The compensatory damages for recovery Chou suffered by the non-breaching party would be the damages that would be awarded to the party in the same situation he would have been in if the other party had executed as agreed upon (Melvin, 2011).

After review of the case scenario involving Big Time Toymaker and Chou the game inventor, we have concluded that not only was there a contract agreement between the parties, but that according to E-contract law, Chou may be bound by the terms included in the original email sent from BTT. In addition, the doctrine of mistake cannot be used in this situation because of scienter toward Chou and the old and new management of BTT. Several questions were asked of our team in accordance with contract law and the scenario provided by the textbook. This completes our analysis of the scenario and answers to the questions we were presented.

Physician And Managed Care Contracts Essay

Physician And Managed Care Contracts Essay

A contract is a legal binding agreement between two parties that is aimed to execute a certain objective. It is a kind of arrangement wherein a certain action is pledged in exchange for a specific proposition or offer. In order for a contract to be valid, four essential elements must be present in a contract.

Firstly, two parties should exist in the contract.

One party is presenting an offer while the other party is accepting the offer as a form of return for whatever specifications are requested in the contract.

Secondly, the contract should indicate that both parties give their consent or are willing to enter into such an arrangement. Such intention should show that the person giving the offer is capable of providing the offer, while the party accepting the offer should be able to clearly show his/her acceptance of the offer. In addition, both parties must be willing to enter an agreement without any other hidden conditions. Thirdly, a purpose or objective should be indicated in a contract. The purpose should be detailed enough to clearly show what is requested or expected in exchange for the specific offer.

And lastly, adequate consideration or an adequate value must be indicated as offer in the contract, in the form of money or in kind. The consideration or compensation can not be given to the accepting party prior to the acceptance of the offer. The act of accepting an offer constitutes a deal. Certain offers have a limited time of availability, wherein an expiration date is indicated and the offer can not be accepted after the said date, unless the offer is renewed or stands indefinitely. In addition, the party presenting the offer has the right to withdraw its offer, but only before an acceptance is received.

Once an offer is accepted, the contract may not be modified or revised. Changes in the offer may only be incorporated during the negotiation stage of the agreement, which then makes a contract some kind of a bargain. Similarly, physicians enter contracts with managed care organizations (MCOs) or health management organizations (HMOs) in order to promote their services. The four essential elements of a contract should be carefully studied before accepting any offer or signing any contract.

For example, as for the element of willingness and capability to enter a contract, a physician should initially must find out the MCO/HMO’s length of operation and financial stability, because this will give the physician an idea whether the company is capable to pay him at a regular schedule. In addition, it would be good to contact some colleagues who have signed contracts with the same company, in order to determine the strengths and weaknesses of the organization and to unearth any unwritten conditions or policies.

The physician should also investigate the identity of the MCO/HMO, and any other parties in the contract, should there be more than two parties indicated in the contract. The most overlooked element of a contract between a physician and an MCO/HMO is the purpose or objective of the contract, which describes a several definitions of services and people that will be covered by the health plan, both during emergency and out-patient consultation events.

A comprehensive study of the contract may possibly prevent misunderstandings between the two parties and therefore provide a clear-cut description of the services that the physician is expected to deliver. Another important element of a physician-MCO/HMO contract is the obligations of each party. It is usually indicated in the contract that the physician will actively maintain his/her medical practice documents such as licenses, certifications, registrations and permits in order to provide his/her services to patients.

The physician should also inform the MCO/HMO of any modifications on his/her status as a practicing physician. In turn, the MCO/HMO presents its rules and regulations to the potential physician or health care provider working under their company. All policies, guidelines, reviews and appeals should be revealed in order to have its physicians working at the standardized efficiency and competency. The physician’s compensation should be indicated in a physician-MCO/HMO contract. Details including the amount and schedule of payment should be clearly stated in the contract.

Payment modes may be in form of per diem, per case, per service or a certain percentage of the premiums. The physician, in turn, should understand the protocol for filing claims and any other arrangements or coordination with the MCO/HMO, including the limited time when these documents may be filed. The MCO/HMO should also indicate in the contract that the physician will receive his/her salary on a regular basis. A physician-MCO/HMO contract may be terminated by either mutual agreement of both parties, or with sufficient cause or reason from the physician, or without cause or reason from the physician.

However, a 30-day notice is usually required before any termination takes effect, to provide ample time for the physician to finalize any current patients, cases, services and/or referrals. Contracts are legally binding documents which must be carefully studied and considered before pursuing an agreement and letting the contract take full effect. Every contract has its specific details and all sections of the contract should be well understood and explained.

Pacific oil company Essay

Pacific oil company Essay

The Pacific Oil Company went into negotiations with Reliant Manufacturing, and its goal was to sign a more long-term agreement. Pacific assumed that the new contract would be signed with no major hurdles or objectives, and that the dominant point of negotiation would be price. Jean Fontaine, who is the marketing vice president for Pacific Oil, went into a negotiation process with Reliant. Jean started the process several years before Reliant Manufacturing’s contract was up, hoping to beat her competition to the lower price offers and leave with a contract extension of 5 years.

Unfortunately, Jean did not properly research her client’s needs or adequately project what the outcome might be. Because of this, Pacific Oil Company was not prepared to address the concerns and requests that Reliant brought up during the negotiation. Though both parties wanted to move quickly toward signing a contract, Pacific Oil Company elongated this process because it did not have a thorough negotiation strategy that included a contingency plan or best alternatives.

Pacific oil also neglected to draw out its best alternatives or bottom line in advance. Staying on the Same Page in Business Negotiations Pacific believed that other elements of the contract might be discussed, but that no dramatic changes would be expected. Because of Pacific’s lack of strategic planning, they wasted valuable time, money, emotional stress and energy. They also risked losing other opportunities that could have been more favorable for them. Adding to the problem was Pacific’s assumption that Reliant would sign a new contract quickly.

Because of the time and money spent on traveling and negotiating back and forth, and the potential need for new technology development, which would be based on the contract’s outcome, Pacific Oil Company became increasingly desperate to finalize a contract with Reliant. As a result, Reliant obtained the advantage needed to make more demands during negotiations. Additionally, Reliant was aware of Pacific Oil’s dependence on its business, and took full advantage of these opportunities.

Filipino Overseas Contract Workers in the US Essay

Filipino Overseas Contract Workers in the US Essay

For the first study, it is expected that the researcher would determine the factors that motivate Filipinos to leave their own country and work abroad. This would include their financial situations in the Philippines together with family size, occupation of spouse, occupation or educational level of the children, and other demographics. Since it is quantitative, it is expected that the study will be able to generate statistics in order to determine the best reason for their migration. Participants would probably prefer to migrate because of more compensation and support for multicultural groups (Zalaquett, et.

al, 2008).

This also includes an opportunity to work with the protection of the law implemented in the United States. Qualitative data would suggest poor chances of development for them in their own country. It is also expected in the trend study results that US foreign policy will be implemented for the migration of Filipinos in the country. More Filipinos are expected to leave their country and eventually take their families after they have established their lives in the States.

However, the study does not make use of any scale in concluding for its objectives.

The study is also limited to Filipinos whereas other races such as Israelites and Palestinians are not included. Also, the focus is only on the reason why Filipinos prefer to leave the Philippines and work in other countries (American Psychological Association, 2002). Based on the expected outcomes of the study, it is recommended by the researcher that further studies be initiated on this specific topic. It is also recommended that a study be conducted on job satisfaction of Filipino overseas workers (OFWs) in the United States and compare them with those who prefer to stay in the Philippines.

A comparative study on worker’s rights and social security policies between the Philippines and other OFW filled countries is also recommended to further supplement the results of the present study. References American Psychological Association. (2002). Ethical Principles of Psychologists and Code Of Conduct (PDF). Zalaquett, C. , Foley, P. , Tillotson, K. , Dinsmore, J. , Hof, D. (2008). Multicultural and Social Justice Training for Counselor Education Programs and Colleges of Education: Rewards and Challenges. Journal of Counseling & Development, Volume 86, Number 3, 323 – 329.