Premium Essay

When a Contract Is Being Negotiated

In: Business and Management

Submitted By gloverdj
Words 1196
Pages 5
When a contract is being negotiated, one party may make statements designed to encourage the other party to enter into the agreement without intending the statements to become contractual promises (Lambiris, 2010, 44). When a statement is made that is not intended to be legally binding it can be regarded as a representation. This is outlined in the case Oscar Chess Ltd v Williams [1975] 1 All ER 325 whereby Williams was selling the car to Oscar who was a car dealer. Williams stated that the car was a 1948 Model as per the documents he supplied to the car dealer. When the dealer ascertained that the car was in fact a 1939 model he sued Williams for breach of contract. The issue was whether William’s statement about the age of the car was a term of the contract or a representation. In this case two judges stated that William’s statement about the age of the car was a mere representation and that the dealer with his specialist knowledge should have verified the age of the car. The third judge disagreed stating it was a vitally important term within the contract (Lambiris, 2010, 217).
When negotiating a contract both parties must distinguish between those statements that are made as a matter personal opinion and those made as a matter of fact. Opinions are not intended as promises or terms to a contract (Lambiris, 2010, 44).
Statements can often be made by a person selling goods or services to excite others to enter into contracts to purchase those goods or services. These statements are not intended to be taken seriously, do not amount to a promise or term of the contract and are often referred to as “puffery”. These statements are often easily recognised by both parties (Lambiris, 2010, 44).
The moment someone decides to sign a contract that contains terms, it is deemed that they are agreeing to be bound by the terms stated in the contract therefore making the…...

Similar Documents

Premium Essay

Intermediate Pricing and Contract Integration

...Intermediate Pricing and Contract Integration Name Professor Institution Course Date TABLE OF CONTENTS CHAPTER PAGE Executive Summary ………...…………………………………………………………………………………… 3 Introduction ……………………………………………………………………………..4 Price Negotiation Memorandums (PNMs) 1. Issuing of government Contracts …….………....………………………………………5 2. Bidding and negotiation ………………….…….…………………………… ………6 3. Negotiation Summary..................................................................................................7 4. Introductory Summary……………………………………………………………….8 5. A tabular summary of price………………………………………………………….10 6. Government Contracting……………………………………………………………10 7. Vertical integration as a contracting technique……………………………………..11 8. Private-public partnerships…………………………………………………………..12 Executive summary This guide acts as a replacement to the earlier Air Force Material Command FAR Supplement with the intention of making it better than its predecessor. The scope of this document is to provide information on the necessities of developing prices and then devising of mechanisms to determine the fairness of the prices. It is with this precedent that the document goes back all the way from the historical behavior of factors that affect the prices up to the...

Words: 2621 - Pages: 11

Premium Essay


...kinds of Legal Contracts Teneisha Bonner BUSN150-1303A-03/Professor Smith August 11th, 2013 Abstract One of the main attributes of an advanced community is the legal obligation contract, which permits individuals to make promises with one another knowing that they have legal options in the circumstance of a violation of the deal. Contract regulation in the United States is based on common law and it sometimes varies by other states and even with federal circuits. In this paper, different legal contracts will be discussed. Different Kinds of Legal Contracts A contract can be either an express agreement or an implied agreement. An express contract is one in which the words are being pronounced verbally, either orally or in writing. An implied contract is one in which some of the words are not being pronounced in terms. An implied contract can either be understood in fact or understood in regulations. An agreement which is mentioned in fact is one in which the situations imply that both individuals have made a deal even though they both have not done so expressly. For instance, when an individual goes to the doctor for his/her yearly physical, he/she always comply that they will pay an affordable price for the labor. If he/she does not want to pay for the service after the physical, then he/she has broken the contract that has been implied in fact. When an express contract is being implied, both parties have to decide whether if the terms are being expressed......

Words: 705 - Pages: 3

Premium Essay

Closing-Out Procurement Contracts

...Running head: THE CLOSE-OUT OF PROCUREMENT CONTRACTS 1 The Close-out of Procurement Contracts: The Steps to Successfully Close Out a Contract Including the Processes of Termination and Settlement of Seller Claims Kelley L. Clanton Northcentral University THE CLOSE-OUT OF PROCUREMENT CONTRACTS 2 The Close-out of Procurement Contracts: The Steps to Successfully Close Out a Contract Including the Processes of Termination and Settlement of Seller Claims Procurement contract close-out is a heavy and important topic for organizations that have procurements needs on a consistent or even a fleeting basis as the materials and products acquired through these procurements are often needed to keep the flow of good sales going and/or keeping operations under control and running at optimal performance. There are really only a few basic ways that an executed contract can end with the hoped-for outcome, and probably the usual one as well, being that the contract is fulfilled at the satisfaction and agreement of both sides of the contract. However, there are some pitfalls and other negative outcomes that can happen before, during and after a procurement contract is in force and indeed procurement contracts can end in a quite ugly fashion if one is not careful and/or does not exercise a proper amount of foresight. Even with this potential blowback, this does not mean that a...

Words: 3248 - Pages: 13

Premium Essay

Counter Trade, Purchase Contract & Negotiated Procurement

...Import under Countertrade At times, standard goods-for-cash payment structures do not work, are cumbersome, expensive, or simply impossible. In these cases, companies can adopt countertrade. Countertrade involves the exchange of goods in barters or other ways in place of money. For example, if a nation’s currency is not exchangeable or no good overseas, they may offer a commodity or other product in place of cash. Countertrade was common in the USSR in the 1960s when its currency was nonconvertible. It was their only means of purchasing foreign goods. Countertrade grew in the 1980s as many other nations did not have the foreign reserves required to make imports. Countertrade increased yet again during the Asian financial crisis in 1997, as many currencies became devalued and had severely limited buying power. One example of countertrade was when the USSR paid Coca-Cola in vodka. Poland did the same with Coca-Cola but paid in beer. Countertrade can be separated into five variants: 1. Barter 2. Counter purchase 3. Offset 4. Buyback or compensation 5. Switch trading Barter is simply the direct trading of goods and or services between two parties with not monetary exchange. It is normally used in one-off deals with trading partners that are not trustworthy or that lack any credit. Barter is the simplest and most restrictive type of countertrade. Counter purchase is a mutual buying agreement which involves one party agreeing to buy a pre-specified amount of goods or......

Words: 997 - Pages: 4

Premium Essay

Getting the Contract

... Getting the Contract Cecil T. Smith Dr. Calvin Lathan III BUS 319-Principles of Federal Acquisition and Contract Management February 28, 2013 Analyze the process of pre-negotiation to determine why it is so important to the company. Holding pre-negotiation sessions provides a forum for both parties to communicate their objectives. These can be held anywhere between one week to a month before negotiations, depending on the complexity of the negotiations and the amount of needed information to be gathered (Ghamami, 2011). The process of pre- negotiations is important to company for many of the same objectives they are to the government. Those objectives are spelled out for the government in FAR 15.406-1 Pre-negotiation objectives. (a) The pre-negotiation objectives establish the Government’s initial negotiation position. They assist in the contracting officer’s determination of fair and reasonable price. They should be based on the results of the contracting officer’s analysis of the offeror’s proposal, taking into consideration all pertinent information including field pricing assistance, audit reports and technical analysis, fact-finding results, independent Government cost estimates and price histories. (b) The contracting officer shall establish pre-negotiation objectives before the negotiation of any pricing action. The scope and depth of the analysis supporting the objectives should be directly related to the dollar value, importance, and complexity of the......

Words: 704 - Pages: 3

Premium Essay

Terms of Contracts

...Terms and Exemption Clauses 1) Parol Evidence 2) Terms and Representation 3) Implied Terms a) In Fact b) In Law c) In Statute d) By Custom 4) Classification of Terms 5) Exemption Clauses: Incorporation a) By Signature b) By Notice c) By Previous Course of Dealing 6) Construction a) Contra Proferentem Rule b) Rule in Cases of Negligence Liability c) Doctrine of Fundamental Breach 7) Unfair Contract Terms Act (UCTA) a) Liability in Negligence b) Liability in Contract c) Sale and Supply of Goods d) Test of Reasonableness Parol Evidence Rule a) No extrinsic evidence (such as any oral agreement or statement) is admissible to add to, vary or contradict a written instrument or contract. b) Exceptions c) Contract was the result of mistake, a lack of consideration, or of misrepresentation d) Mistake in the written contract i) Joscelyne v Nissen (1970) e) Contract has not yet come into existence or that it is no longer in operation i) Maybe due to the occurrence or non-occurrence of a certain event by a certain date, which has been accepted verbally ii) Pym v Campbell (1856) iii) Obligation to buy shares in an invention was conditional upon a 3rd party approving the invention, of which the approval had not been received. f) Where extrinsic evidence demonstrates that a particular custom of trade must be implied to, and therefore become a part of, the written......

Words: 6952 - Pages: 28

Premium Essay

Difficulties of Crossing the Border & Fear of Deportation When Being in the United States

...not over, but it just beginning. Immigrants that migrate to the United States in pursue of a better life for their families and themselves, but face the first challenge even before crossing the border, which is leaving their families behind. “When men and women immigrate illegally to the United States, they often leave much more than a town and a country. They leave fathers and mothers, husbands and wives, sons and daughters. The children sometimes grow up not knowing their parents — and sometimes never seeing them again. In some cases, they come to resent the parent who isn’t there at Christmas or on their birthday or to tuck them in at night.” (Trevizo) leaving family behind is the most difficult thing for a parent because you do not know if you will die trying to cross the border or how long it will take to be reunited with the ones you love. They have to say goodbye to their love ones like if it is the last time he or she will see them again. Immigrants pay money to be sneaked into the United States, but sometimes things do not go as planned and many immigrants lose their lives or get caught. “Velazquez was left a widow after her husband Irineo Barrita, 29, was killed together with eight other Mexican nationals-all from Oaxaca-when the driver of the van in which the group was riding attempted to flee the Border Patrol in Palmview, Texas, on April 10, 2012. Six other passengers of the packed vehicle were injured.” (Paterson) this shows that immigrants are not......

Words: 1574 - Pages: 7

Premium Essay

Contract Creation

...Contract Creation and Management Contract Creation and Management It is important for businesses to effectively create and manage contracts. A contract serves as a legally binding agreement between two parties (Cheeseman, 2010). However, having a signed contract does not mean each party will fulfill the obligations as stated within the contract. Therefore, businesses must implement an effective contract management plan to assure each party of the contract fulfills the obligations as outlined within the contract. Presentation of the Problem Citizen-Schwartz Ag is a large German bank that has contracted with Spam Systems for the development of banking software system. The contract is a one year contract worth $6 million dollars. Citizen-Schwartz has not been satisfied with the progress of Spam Systems meeting the contractual obligations for the development of the new banking system. Citizen-Schwartz has claimed Spam Systems is not producing a quality product that is meeting the timelines established with the contract. Spam systems claims that the requirement changes have exceeded the ordinary conditions established in the contract and this has led to the inability of Spam Systems to meet the timeline. Because the ordinary conditions have exceeded expectations, Spam Systems has begun delivering a lesser quality product in a means to meet the contracted timelines. The inability of Spam Systems to deliver a quality product in the expected......

Words: 888 - Pages: 4

Free Essay

Advanced Contract Formation and Administration

...ADVANCED CONTRACT FORMATION AND ADMINISTRATION Examination Questions 1. Describe the three levels of competition permitted under the Competition in Contracting Act (CICA). Give an example of each. a. Full and open competition; Full and open competition means that all responsible sources are permitted to submit sealed bids or competitive proposals on the procurement. It is the preferred form of contracting and includes contracting by sealed bids, negotiation, and other procedures. Example: b. Full and open competition after exclusion of sources Full and open competition after exclusion of one or more sources is used when the U.S. Government excludes certain potential sources from consideration for a contract in order to establish or maintain alternative sources c. Other than full and open competition Under this method, a bid or proposal is solicited from one, or very few, sources. Detailed justification and approvals are required to document the choice of other than full and open competition as a means of acquisition. Example: The Department of Homeland Security, Office of Procurement Operations, proposes to enter into a contract on a basis other than full and open competition. DHS has a requirement on a sole source basis to upgrade and maintain proprietary software at an estimated cost of $7,550,000. List the name and address of the proposed contractor(s). 2. What is meant by the term “ratification” of a contract action? Who has the authority......

Words: 1652 - Pages: 7

Premium Essay

Win the Contract

...Win the Contract Business 330 Professor Bridges May 27, 2016 Imagine your small business produces very small remote control aircraft capable of long sustained flights. You are ready to expand your business by competing for Department of Defense (DoD) contracts. You wish to bid on a contract that will be worth over $600,000 to your expanding company. Select the simplified acquisition method that fits your company the most, and then provide a rationale for your selection. Note: Remember you are a small business that will have a massive expansion if you win this contract. Far Part 13, Simplified Acquisition Procedures, identifies the policies and procedures for the acquisition of supplies and services, including construction, research and development, and commercial items not exceeding the simplified acquisition threshold (SAT). The purpose of simplified acquisition procedures (SAP) is to reduce administrative costs, improve opportunities for small businesses, promote efficiency in contracting, and reduce the administrative burden on the government and contractors. Authorization for using SAP at levels above the SAT may be implemented through policies such the Test Program for Certain Commercial Items. Under this program, FAR Part 13 authorizes using SAP up to $7 million ($13 million for purchases made in support of contingency operations). Authority to continue using this type of program must be passed through legislation. Remaining aware of such authority......

Words: 880 - Pages: 4

Premium Essay

Contract Creation and Management

...Contract Creation and Management Contracts are made, negotiated, and broken every day in business situations. They are the backbone of many businesses proposals and they set the standards for which they get the process started. There are many issues that have to be negotiated and discussed for a contract to work for both parties. Both parties must have the ability to communicate and have the patience to work through many of the complications that may occur during the process. This paper will discuss the analysis of the contract problems between Span systems and Citizen – Schwarz AG. After reviewing the simulation we have to come to the following response and conclusion to the issues at hand. Being the project manager in this simulation it would show that I would be trying to keep this contract with C-S so that we will be in the running for the other contract that may be in play. The problem that has occurred is the fact the process has not being completed at a quick enough pace for C-S and they want to get out of the contract and look into changing to another company located in India. This process is not a good move for C-S due to the fact that they have made changes and Span has compiled with every move that have made. The only problem is that Span has also had some internal programming issues that will have to be handled so that C-S can see that we are moving forward with the process. “Good negotiators do their homework. Here are some tips for making your next......

Words: 668 - Pages: 3

Premium Essay


...Time and Material Contracts Scott L. Earle Con 280 - Source Selection and Acquisition of Service Contracts March 12, 2012 Various DAU Faculty from Huntsville, AL Campus Time and Material Contracts Department of Defense (DoD) Contract Officers and Contracting Specialists are tasked with being the stewards of the American taxpayer’s hard earned dollars and it is a responsibility they take personally. Acquisition personnel are tasked with utilizing the proper contract vehicle to procure services, materials, supplies, constructions projects, and countless other items. Contract vehicles are not one size fit all and depending on the circumstance the acquisition personnel will reach into their tool box and choose the correct vehicle to administer the contract. There is a wide selection of contract types available to provide needed flexibility in acquiring the large variety and volume of supplies required by the DoD. The various contract types vary according to the degree and timing of the responsibility assumed by the contractor for the costs of performance, and the amount and nature of the incentive offered to the contractor for achieving or exceeding specified standards or goals. Contract types are grouped into two broad categories; Fixed-price contracts and Cost-reimbursement contracts. The specific contract types range from firm-fixed price, in which the contractor has full responsibility for the performance costs and resulting profit (or loss), to......

Words: 1380 - Pages: 6

Premium Essay

Contract Obligations When Going Into Business with Partners

...Bloggs 2 1.1 Corporate Structure 2 1.2 Formation of a proposed company 2 1.3 Registration 2-3 Section 2 Memorandum of Association 3 2.1 Article of Association 4 2.3 Directors of Company 4-5 2.4 Secretary 5 2.5 Share Capital 5 2.6 Charges 5-6 2.7 Auditors 6 2.8 AGM or EGM 6 Section 3 Any Protection under Irish Company Law 6-7 Section 4 Conclusion` 7 Reference 8 Appendix Appendix A Company limited by share 9 Appendix B Duties of Shareholders 9 Appendix C Directors/Secretary/ Companies 9-10 Appendix D Directors Responsibilities 10-11 Appendix E Secretary Responsibilities 11 Appendix F Ten points to contracts 11 Appendix G Standard form contract 12 Appendix H General Principles 13-20 Section 1 Memo to Joe Bloggs Relating to going in to business with the Corcorcan brothers in the manufacture of hurleys and protection of supply of Ash in Poland. 1.1 Corporate Structure. Recommend a private company limited by shares. Consisting of 4 members, 3 Corcorcan brothers and Joe Bloggs. Corcoran brothers well supply facilities, contacts, accountancy knowledge and marketing. You will supply web based sales knowledge. Each member must contribute a nominal sum of money and be issued with shares. The right of members to transfer their shares is restricted, under Article of Association. You must request 26% or......

Words: 7036 - Pages: 29

Premium Essay

There Are Two Types of Observation, Covert and Overt. the Difference Between Them Is That Covert Observation Is When the People Being Observed Do Not Know They’re Being Watched or Studied, and Overt Observation Is When

...Germany should make annual payments on a sliding-scale up to 1988. It was adopted by the Allied Powers in 1930 and replaced the Dawes Plan. Oct 1929 Wall Street Crash – as a result, 20% of British workforce was unemployed 1930 MacDonald gained an agreement with Japan and the US to limit naval building – USA, Britain and Japan agree to fix ratio of cruisers to 10:10:7 Aug 1931 National Government formed – to save the economy, MacDonald split the Labour Party and joined forces with the opposition in the National Government. 1931 MacDonald agreed Britain to signing the act for the peaceful settlement of international disputes Sep 1931 Japanese army seized a number of points in Manchuria, following the Mukden Incident of September 18th, when a section of railroad owned by Japan’s South Manchuria Railway was dynamited. The Imperial Japanese Army, accusing Chinese terrorists of the act, responded with the invasion of Manchuria. 1932 Import Duties Act – 10% tax on most imported goods (apart from Empire) 1932 The RAF was only the fifth largest air force in the world Feb 1932 Japanese army took over whole of Manchuria Feb 1932 – 1934 World Disarmament Conference – met in Geneva. The British government wanted world disarmament and was supported in this by small powers, but Germany, France, Italy and the USSR opposed any wide-ranging agreements – a British proposal to place strict limits on the production of tanks, bomber aircraft, submarines, poison gas and chemical weapons......

Words: 3898 - Pages: 16

Premium Essay

Federal Contract Law Overview

...Procurement Law Overview, Part One Procurement and Contract Law Procurement Law Overview, Part One The purpose of this paper is to provide an overview of procurement law. There are three different branches of Government: Legislative, Executive, and Judicial. In the United States, the Office of Federal Procurement Policy (OFPP), the Defense Acquisitions Regulations (DAR) Council, and the Civilian Agency Acquisition (CAA) Council determine federal procurement policies by its legislative action and recommendations. Those are then published in the Federal Acquisition Regulation (FAR). The FAR is issued jointly by the Department of Defense (DOD), the General Services Administration (GSA) and the National Aeronautics and Space Administration (NASA). It applies not only to direct purchases made by the government, but also to purchases made by federal grant recipients (Feldman, 2010). The government procurement team is made up of the Contracting Officer (CO), Administrative Contracting Officer (ACO), and Termination Contracting Officer (TCO). The government planning process consists of market research and an internal source search before they proceed with full and open competition which allows all responsible sources to submit either a sealed bid or competitive proposal on the procurement. The market research consists of availability and quantities of items, and reasonable prices. Internal sources include existing inventory, excess from other agencies, and federal prisons......

Words: 2087 - Pages: 9

The Masked Singer | Turbo: A Power Rangers Movie (1) | no tears left to cry - Ariana Grande