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Samedaymay30 DQ1 EA-Activity and DQ2 : Time, Risk, and Options - Essay Example

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Occasioned by a number of interpretations, oral contracts in most cases are void as there are no references for agreements made therefore written contracts in the event of collusion do supersede…
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Samedaymay30 DQ1 EA-Activity and DQ2 : Time, Risk, and Options
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Risk Allocation in Subcontractor Contracts Major Risks in Subcontracting An agreement enforceable by law, made between two or more parties is a contract. Occasioned by a number of interpretations, oral contracts in most cases are void as there are no references for agreements made therefore written contracts in the event of collusion do supersede oral contracts (Blum, 2011). In addition, a clear addressograph should be contained in the contract to ensure that one is bound and obliged by the intended clientele. In order for enforcement, there is need to indicate that what is written down is an agreement of both parties, secondly, any manipulations made to the contract must be affirmed by both parties in writing. Moreover, in the event that a provision is found to be unenforceable by courts of law, the contract will not be invalid since it has the severability clause and an insurance cover to mitigate the unforeseen uncertainties regarding the contract (Rowlinson, 2011).
Risk Allocation in Subcontractor Contracts.
Upon mutual understanding, there is to be an agreement. Here for any loss or liability a consideration is given to the aggrieved party. The provisions are threesome (Cooper, 2005). To start with, it can be regardless of who propelled the loss one party is reinstated. Consequently, payments could be made by the party that propagated the negligence and one party pays for losses caused wholesomely or partly by them (Smith, Merna & Jobling, 2006).
Time, Risks and Options
The underlying options for proper cost benefit analysis should be undertaken. Proper address details should be presented to prevent fraudulent behaviors (Thomset, 2011). There terms and conditions should be well indicated and the consideration in the agreement in addition to insurance covers. To justify taking risks, written documents about the organization should be provided, a careful visual breakdown of all the departments inclusive. Similarly, what is written must be enforceable by law and made by parties who have the capacity to contract (Nimethy, 2011).
Blum, B. A. (2011). Contracts (5th ed.). Austin: Wolters Kluwer Law & Business, Aspen Publishers.
Cooper, D. F. (2005). Project risk management guidelines: managing risk in large projects and complex procurements. West Sussex, England: J. Wiley.
Nemethy, L. (2011). Business exit planning: options, value enhancement, and transaction management for business owners. Hoboken, N.J.: John Wiley & Sons.
Rowlinson, M. (2011). A Practical Guide to the NEC3 Engineering and Construction Contract. Chichester, West Sussex, UK: Wiley-Blackwell.
Smith, N. J., Merna, T., & Jobling, P. (2006). Managing risk in construction projects (2nd ed.). Oxford: Blackwell Pub..
Thomsett, M. C. (2011). How option contracts work. Upper Saddle River, N.J.: FTPress Delivers. Read More
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