(a) What is a contract? 2 marks (b)The trend ia towarda writing contracts, inclu
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(a) What is a contract? 2 marks (b)The trend ia towarda writing contracts, including engineering contracts, in plain, intelligible language, However, it is not easy to keep commercial contracts or their interpretation or explanatlon entirely free from traditional legal expressions. What is the meaning of the following terms commonly encountered in 2 marks 3 marks engineering contracts? (1) Acceptance (Ii) Letter of intent (ili) Liquidated damages (iv) Repudiation of a contract (v) Subcontractor (vi) Supplier 2 marks) 2 marks 1 mark 2 marksExplanation / Answer
contract
A voluntary, deliberate, and legally binding agreement between two or more competent parties. Contracts are usually written but may be spoken or implied, and generally have to do with employment, sale etc..
ACCEPTANCE:
An offer is an open call to anyone wishing to accept the promise of the offeror and generally, is used for products and services. Acceptance occurs when an offeree agrees to be mutually bound to the terms of the contract by giving consideration, or something of value like money, to seal the deal.
LETTER OF INTENT:
A letter of intent (LOI) is a document outlining an agreement between two or more parties before the agreement is finalised. A LOI may be issued during the course of pre-contract negotiations or immediately after their conclusion to clarify the key points of a deal for the convenience of the parties concerned.
LIQUIDATED DAMAGES:
Liquidated damages (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach.
REPUDIATION OF A CONTRACT:
Anticipatory repudiation, also called an anticipatory breach, is a term in the law of contract that describes a declaration by the promising party to a contract that he or she does not intend to live up to his or her obligations under the contract.
SUBCONTRACTOR:
Subcontractor is a person who is awarded a portion of an existing contract by a principal or general contractor. Subcontractor performs work under a contract with a general contractor, rather than the employer who hired the general contractor.
SUPPLIER:
Suppliers for design and construction. In the construction industry, 'supplier' is a very general term which refers to organisations contracted as part of the delivery of a built asset
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