Law, Contracts, and Agreements - Essay Example

All contracts are enforceable whether in written form or not, but the written contract protects all parties to it. Contracts like those of insurance policies, sale of property, and installment plans must be in writing to be enforceable and legally binding. (Chandler & Brown 2007, p. 321)

Marshal Construction Limited is a registered company located in Sioux Falls, South Dakota. It deals with the construction of buildings, roads, and dams. The company signed a contract with another company by the name Sholem Quarry Limited to supply them with construction stones, bricks, and sand. Sholem Quarry promises to supply the materials continuously for six months. In addition, they are willing to extend the contract if more materials will be after the expiry of the contract by entering into another contract. The two parties agreed that the management of the Sholem Quarry should purchase and maintain insurance, which will protect them from claims under employees' compensation acts and other workers' benefits acts. This will cover the managers and the employees during the supply of the material to the construction site. They agreed that the certificates of insurance must be retained to show that the insurance cover will remain in force throughout the life of the contract, as they might be required on some occasions. The manager and subcontractors of Sholem Quarry must obtain and pay for a permit and license that they will use during the life of the contract. (Fafinski & Finch 2008, p. 192).

If Marshal Company provides any property to the supplying company for use during the contract period, the supplying company should make sure that not all properties are damaged before the end of the contract. If any property is damaged it should be repaired without any additional cost from the Marshal Company. Damages are not limited to the properties provided only but also it should include any repair called for by the client even after completion of the supply of materials. Damages also include any harm caused by the supplier to the neighbors and their properties when supplying the materials.

The supplier should provide a list of all of his managers and employees who will be working in the course of supplying materials. The manager appointed by the supplying company must provide supervision of all work including any coordination in any portion of the work under the contract. Change of orders – The contract may be amended by change of order at any time so long as the change order makes some specific reference to the contract and is put in writing by both the supplying company and Marshal Quarry Limited. The change order will not change the contract or relieve the supplier or construction company from their respective obligations under the contract. After the change of orders, the work shall not start until the supplier has been notified in writing that the change has been approved. The cost of the additional work and materials under any change of order shall be the responsibility of the Marshal Company unless it is agreed in writing that it will be the responsibility of the supplier. (Williston 2010, p. 237)

The payment and method of payment must be agreed upon before the start of the contract. The supplier shall request for payment from the owner for work that has been performed. The owner company should not pay the lump-sum money at the end of the contract but as per the agreement with the supplier. The owner shall retain 10% of the payment, which will be paid, plus the final payment after the completion of the supply. The inspection shall be performed in specified periods. After the supply has been completed, the inspection shall be made to confirm that everything is in order and the final payment is made.