professional practice

1. BIRBHUM INSTITUTE OF ENGINEERING &
TECHNOLOGY
NAME – SOMENATH MANDAL
UNIVERSITY ROLL NO - 11801322017
REGISTRATION NO - 221180120133
SEMESTER- 8th
DEPARTMENT- CIVIL ENGINEERING
YEAR- 4

2. ‘Common principles of contracts’
• SUBJECT NAME - Professional Practice, Law and Ethics
• SUBJECT CODE-CE(HS)801

3. What is a contract?
A contract is essentially a legally binding agreement between two or more parties. It
outlines the rights, responsibilities, and obligations that each party has agreed to
undertake. These agreements can take various forms, including written, verbal, or
even implied by conduct.
A contract is enforceable by law. This ensures that the promises made by the
contracting parties involved are upheld and that any disputes can be resolved in a
court of law or through arbitration.

4. What is contract law?
Contract law describes the legal framework that governs these agreements. It is
commonly governed by the state common law and establishes the rules for creating
valid contracts, interpreting their terms, and enforcing them if necessary. This ensures
fairness and predictability in business dealings and everyday transactions.
What are the key elements of a contract?
While contracts themselves cover an enormous array of legal areas, they do share a
remarkable amount in common across industry and type. To that end, several key
elements constitute contract formation; contract law is shaped by considerations of
public policy, and parties involved, such as the offeror, must be aware of these legal
principles. Those elements are offer, consideration, acceptance, and mutuality.

5. Offer
The offer, explains the educational center, involves one party promising to do
something, or conversely, promising to refrain from doing a particular action.
Consideration
Consideration, it adds, is when something of value is offered in exchange for the
above-stated action or inaction.
“This can take the form of a significant expenditure of money or effort, a promise to
perform some service, an agreement not to do something or reliance on the promise.
Consideration is the value that induces the parties to enter into the contract,” reads
information from the university.
As such, the mere presence of that consideration is what separates a contract from
that of a “gift.” In the legal sense of the word, a gift is a transfer of property that is
made voluntarily and gratuitously with no promise of anything of value to be provided
in return, adds the judicial center. Additionally, failing to deliver on a promised gift is
not considered an enforceable “breach of contract.” Such a breach, along with
remedies and enforcement related to those breaches, will be explored further later.

6. Acceptance
Acceptance, with respect to a contract deals, with the unambiguous nature by which
an agreement is solidified. This may be done verbally, or through performance or
deed, notes the university.
Mutuality
The fourth element of a valid contract is mutuality. Simply stated, this element
requires both parties to understand the terms and substance of an agreement.
Additionally, many legal experts also point to the elements of “capacity” and “legality”
as necessary to create a legally binding contract agreement. If an individual attempts
to enter into a contract without the ability to reasonably understand what they are
doing—individuals under the influence of alcohol, for example, may be deemed
unable to enter into a contract—a judge may find a valid contract agreement was
unable to be properly executed. In turn, that contract agreement may be voided due
to the absence of the capacity element.

7. What are the different types of contracts?
Just as there are several different areas where contracts are generally used, and
there are many common elements of a valid contract, there are also several different
types of contracts.
The type of contract used depends on a number of factors. Those factors range from
the composition of the parties involved to the nature of their relationship and the
ultimate goal of the agreement. Oftentimes, the type of contract used is dictated by
the preferences of the parties involved, however, in some instances, one type of
contract simply doesn’t fit a particular circumstance. The Uniform Commercial Code
(UCC) provides a framework for certain contracts, particularly those involving the sale
of goods, within the broader area of law.

8. Some commonly used types of contracts are:
• Adhesion
• Unilateral
• Bilateral
• Executed
• Aleatory
• Fixed-Price
• Cost-Reimbursement
Adhesion contracts, for example, are negotiated between parties of uneven
bargaining strength. An adhesion contract is drafted by one party, which is
responsible for setting the terms of the agreement, and another party of considerably
lesser strength who must then decide whether or not those terms are acceptable.

9. On the other hand, a unilateral contract involves one entity making a promise to
another should a given set of circumstances take place. This contrasts with its
counterpart, the bilateral contract agreement, which involves both parties making a
promise in order to fulfill the terms of a given agreement.
Furthermore, according to information from the U.S. Department of State, a fixed-
price contract, for example, involves an agreement between a buyer and seller who
each agree in advance on what constitutes full payment for services and supplies
provided in a contract. In contrast, a cost-reimbursement contract is used when the
amount of work cannot be “definitely described” or it is difficult to estimate the costs
with any “reasonable degree of certainty.”

10. The work of a contract refers to the obligations and tasks that each party must
perform under the contract's terms. It includes the specific actions, duties, or services
that one party is required to complete in exchange for compensation or other
consideration. This "work" can involve:
Performance: Fulfilling the agreed-upon duties, such as providing goods, performing
services, or completing a project.
Timeliness: Completing the work within the specified timeframe.
Quality: Ensuring the work meets the standards outlined in the contract.
Payment: Receiving or providing compensation for the completed work.
Acceptance: The work is considered complete when accepted by the other party or
meets the contract’s requirements.

11. PROFESSIONAL PRACTICE, LAW AND ETHICS
-Mr. R. Srinivasa ReddyAssistant Professor

12. THANK YOU