Description of Contract Claims - Essay Example

Contract Claims Affiliation Contract Claims of Contract claims A contract is a form of an agreement made between two or more parties. In a contract, the two teams come into a binding agreement, with their anticipation being bound by the law. It has to be enforced, failure to which bore detrimental consequences. There does exist there essential components of a contract: An agreement, contractual intention and consideration. First, the two parties forming the binding agreement must have reached a binding level of agreement. An objective test has to be applied by a legal body to countercheck the presence of an agreement. Additionally, the contract must have an offer, acceptance evidence, consideration and contextual intentions. An offer consists of the general expressions and parties to participate in an agreement within the laid specified terms. An offer is very different from an invitation to treat, where another party does make an invitation of another party through a statement of offr.an example of a statement of invitation is an advertisement or goods display in a store. Carlill v Carbolic Smoke Ball Company [1893] 2 QB 256 aids us in learning the difference between a statement of offer and a legally binding contract (Davison & Mullen, 2009). In the initial signing of a contract, the two parties must show intense interests to come up with a contractual agreement. Without it, it is not a legally binding agreement. The parties involved must be in a position of creating a legal relationship. Domestic arrangements and other social agreements may not constitute a legally binding contract since there is no provision of consideration from the two parties. A contract can be brought t to an end through diverse ways such as expiration, termination, vitiation and frustration. Expiration entails coming to an end of the contract through its terms expression. Termination can occur through anticipatory breach and termination breach. Vitiation entails a situation where several issues arise secondary to occurrence of an event or violation of an agreement done during the contract. A contract can exist in many forms. It can be verbal, written or even a combination of the two. There do exist many differences between the three contracts, and the parties involved in the contract process must be in a position to establish these differences, especially when it comes to legality issues. Contract claims Contract claims refer to the written demands that do seek the rights to payments of money, adjustment or interpretation of terms of the contract or any issue arising from the signed contract. The parties involved in making of a contract must take part during the claims process. When a claim is filed, the contracting officer has to ascertain whether the claim exceeds the threshold, the constitution expounds and legalizes. All the documents must be present during the filing of the claim. If the appropriate documents are not present, the files should be returned for the ideal documents to be brought. Date of receipts for nay transactions made must be available. Ideal certification entails provision of a statement claim made in good faith, accurate, complete supportive data, authorization to certify the claim and the accurate reflection of the contract adjustment (Ryan, 2005). It is proposed that the two teams should make efforts to solve the disputes in the early stages, before proceeding to lay claim. Disagreements can be solved at the root foundation of their existence. The resolution process has to be kept in order. A claim can be solved informally if the two parties come into terms in writing. The resolution made should be incorporated in writing. The two parties can make decisions to resolve contract claims in different ways. The two parties can hold an informal discussion. Additionally, the third party may be sought to resolve all the controversies and act as a witness. One can also issue contracting officers final decision. Appellate process is also useful in the resolution process. Negotiation remains the best method of solving the conflicts before it translates into a claim. The two parties can meet, talk, discuss and negotiate on the best method until they come into terms. It is also the least expensive method. The contractor can make an effort to submit a dispute while the contracting officer will then decide to resolve the problem instantaneously, hence cutting all the costs largely. He has a mandate to investigate the source of faultiness, and sought out everything within a short duration. The officer must possess excellent listening skills, to avoid misinterpretation and bias (Fitzgerald& Olivo, 2005). Alternative methods of resolution in contract claims The contracting officers’ decisions are final during the resolution process. Fact-finding entails a process where a neutral body and entity does collect information about a dispute and report it to relevant parties. Recommendations are made in the final process. Facilitation entails involve use of third parties in the delivery of assistance in promotion of effective decisions. It does aid the parties in coming up with clear statements. Mediation comes along with third-party disputes, with intensive emphasis on relevant information Causes of typical claims Claims may occur at any one moment, and this remains one of the greatest nightmares for the two parties involved in any agreement. At no one moment are the two parties do expect to result to such a state. Primarily, such situation may arise secondary to poor drafting of the contract requirements. The instructions and contract details may be ambiguous, lack specificity and clarity. The scope of services and terms may not be limited to the angles specified. The two parties may also lack the technical and legal obligations as the law dictates. Most significantly, the contract should have clear work obligation, standards of performance, variations, time extensions and force majeure. Breach of contracts Sometimes the two parties may fail to follow the exact principles and directives as stipulated in the code of conduct during the signing of the contract. Some of the other issues dictating that a contract is bleached include inability to provide full services according to agreed standards, in case of employment. One may provide knowingly defective goods or services. Moreover, a party may fail to meet the stipulated obligations as necessitated in the agreement. Restrictive breaches may occur typically in employment or sales contracts. Breaching different clauses of a contract does call for different implications. Each clause contains its intrinsic importance and viability to the two parties. Some parts are the foundations and very fundamental to the agreement. When one is responding to a breach of contract, prior countercheck is necessary for a bid to confirm the initial instructions. Assumptions are not tolerated. Even if one has had a blow due to the losses incurred, assumptions of assured successful claims may not bear fruits. Following the correct legal path is the way to go (Rubin, Fairweather & Guy, 1999). Defenses to breach of contract claim In the case of occurrence of a breach of contract, one can do the best to defend self through raising up as many legal defenses as possible. One has to respond to the denial with plausible and solid defense arguments in order to convince the second party. Such defenses must be raised early enough before the issue at hand takes another direction. Affirmative defenses work well, and the victim can end up unpunishable should the argument be solid and sensible. A good number of defenses laid in the occurrences of breaching a contract are acceptable. The person who is sued for breaching the contract possesses the agility to prove the defense should the dispute proceeds to the trial. Affirmative defenses do not make inclusion of contesting on the primary claims. It operates on a general assumption that even if one party breaches the contract, the other party filing the lawsuit should not win. Framing of a legal defense is very critical for the success of the person deviant of the contract. One can claim that the contract was supposed to be in writing rather than oral. Solid defense can be laid upon such an utter; for example, one can claim that the state law has a precept referred to as the statute of frauds. The statue expresses that all agreements have to be written especially when it comes to property sales. Sometimes the essential components of a contract may not be agreed upon; in such circumstances, the contract is indefinite. Both parties did not come into terms with the critical elements of the agreement and hence the contract is not final. One can also make a claim that he or she was fraudulently induced to venture into a contract.in such a case when one was dictated to enter into the contract terms under duress or influence, the contract is proved to remain invalid. Sometimes a contract may have unfair imbalances hence validity is questionable (Powell-Smith, 2007). Ethical concerns in contract claims The two parties must be in position of a legal-mutual agreement to abide in the agreement. The process of settling the all the issues should not be based on interests or rights. No corruption should exist between the two parties during the process of parties’ resolution. The process of avoidance is better than the resolution during the process of legality proceedings. Claims, counterclaims, disputes, litigation and arbitration should be avoided. Informed consent must be in full expression. Under no one time should one be forced to sign a contract under coercion or influence. References Davison, R. P., & Mullen, J. (2009). Evaluating Contract Claims. Chichester: John Wiley & Sons. Fitzgerald, J., & Olivo, L. M. (2005). Fundamentals of contract law. Toronto: Emond Montgomery Publications. Powell-Smith, V. (2007). Building Contract Claims. Oxford: John Wiley & Sons. Ryan, D. P. (2005). Essential principles of contract and sales law in the northern Pacific: Federated States of Micronesia, the Republics of Palau and the Marshall Islands, and the United States Territories. New York: iUniverse. Rubin, R. A., Fairweather, V., & Guy, S. D. (1999). Construction claims: Prevention and resolution. New York: J. Wiley. Read More