Wendi Dodson Houston - While Procurement and contract managers are not expected to be legal experts, it is very difficult to manage a contract well without a basic understanding of the elements to a contract and the meaning of significant terms.

1. Legal Aspects
of Contract
Management
WENDI DODSON
HOUSTON

2. Procurement and
contract managers
procurement and contract
managers are not expected to
be legal experts, it is very
difficult to manage a
contract well without a basic
understanding of the key
elements to a contract and
the meaning of significant
terms and clauses.

3. A bad contract
manager
Presentations are tools that
can be used
bad contract manager is not
very well qualified and applies
or thinks that they are
following the rules for the
sake of the rules even if it
means a less than desirable
outcome in business terms.

4. Good contract
manager
A good contract manager is
well-qualified and asks how
can we interpret the law
responsibly and reasonably to
ensure the best possible
business outcome.

5. Estoppel by
conduct
Estoppel by conduct is a form of
estoppel relevant to contract
managers, and is based on the
concept that a party cannot deny a
circumstance if their actions and
statements are inconsistent. In
other words, a contract manager
can be estopped from demanding
services to be delivered in
accordance with a contract.

6. Common Law
Provisions
common law provisions which can
impact on the form, legality
and conduct of building
contracts. These common law
provisions include: ·The legal
requirements for formation of a
contract, including an offer,
acceptance of the offer,
payment of consideration, the
legal intent to form a contract
and the capacity of the parties
to enter into a contract.

7. Privity of contract
The doctrine of privity of contract means
that only the parties to a contract are
legally bound by and entitled to enforce it.
(Only they have rights within that contract).
Consequently, a contract between A and B
cannot impose obligations on C; conversely a
contract between A and B cannot be enforced
by C, even if the contact is intended to
benefit C.

8. This can be an issue
where contracts are
intended to benefit a
third party and the
third party is reliant
upon this. Exceptions
may be put in place to
limit harsh results. The
doctrine of privity of
contract applies only to
contractual rights and
obligations, any non-
contractual rights and
obligations may not be
enforceable.

9. Liquidated
damages
A SUM OF MONEY (AGREED-TO AND WRITTEN
INTO A CONTRACT) SPECIFIED AS THE TOTAL
AMOUNT OF COMPENSATION AN AGGRIEVED PARTY
SHOULD GET, IF THE OTHER PARTY BREACHES
CERTAIN PART(S) OF THE CONTRACT.
IF THE BUILDER FAILS TO COMPLETE THE
CONTRACT WITHIN THE SPECIFIED TIME
(INCLUDING ANY AGREED TIME EXTENSIONS),
THE OWNER MAY BE ENTITLED TO CLAIM
LIQUIDATED DAMAGES.

10. liquidated damages
must be a genuine
Benefits both parties for providing
contractual certainty not requiring
proof of loss simplifying disputes
including performance providing a cap
on liability. However, the quantified
amount of liquidated damages must be
a genuine pre estimate of loss. If a
court considers this amount to be
excessive it may categorise it as
being a penalty, leading to the
clause becoming unenforceable and
therefore the benefits will be lost.

11. Wendi Dodson Houston
As a contract manager
Wendi Dodson Houston As a contract
manager you should always refer
contract issues to your agency's
legal area, possibly just for a
second opinion, to be sure that way
you are interpreting a contract and
the actions you wish to take are
valid.