A contract is a union that binds parties together through a common interest. The contract between Castlemania Big 4 Caravan Park and Wild Company Pty Limited involved a union to upgrade the fire hydrant of Castlemania Big 4 Caravan Park. In this case, as the buyers of the service, my expectation by the end of the contract was to have the fire hydrant upgraded with a monetary consideration on the side of Wild Company Limited.
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Creation of a Valid and Enforceable Contract
Some of the requirements that are crucial in the creation of a valid and enforceable contract include offer and acceptance, consideration, and intention. Before commencing the contract one of the parties, either the buyer or the seller needs to advance an offer to the other party. It is imperative to ensure that the target party understands the requirements of the contract and gets the correct information before tendering the consent.
Any kind of misinformation, that either party uses in the process of tendering the offer in an attempt to persuade acceptance by the target party, renders the contract void and immaterial. When the target party is satisfied with the provisions of the contract offered and has the correct information, the party then accepts the proposal. In essence, the consent to the contract should be free from any form of coercion, duress, or force.
A legal contract that binds parties must have legal considerations that take effect after its execution. Considerations may take a monetary form, an act of kindness, or an exchange of legal objects. It is crucial for the parties to the contract to have the correct information concerning the kind of consideration that materializes after the execution of the contract. For instance, in the contract between Wild Company Pity Ltd and Castlemania Big 4 Caravan Park, Wild Company Pity Ltd receives monetary consideration from Castlemania Big 4 Caravan Park.
Subsequently, Castlemania Big 4 Caravan Park would have its Fire Hydrant/Hose Reel upgraded. Since the money and the services are legal considerations, then the contract materializes. For the contract to be valid and enforceable, the parties must have an intention to create a binding union. As a result, parties to a valid contract need to be ready and willing to work together in a union governed by legal provisions owing to the enforceability of the contract.
|Part 1: Risk Identification||Part 2: Risk Assessment||Part 3: Risk Treatment||Part 4: Risk Monitoring and Review|
|Step 3||Step 4||Step 5||Step 6||Step 7|
|What is the Risk||Why is it a Risk||Risk Analysis||Risk Evaluation||Suggested Mitigation||Expected Success||What to do|
|Strategy alignment||It affects the validity of the contract||High since parties can fail to align the contract, according to organizational goals.||Failure to achieve organizational goals and objectives.||The risk is serious since it affects the course and validity of the contract.||Ensuring that the course of the contract is in line with the intended organizational objectives and goals.||Achievement of organizational success||Alignment of the contract to match the expectations of the company|
|Business case||It leads to the formation of a contract through assumptions and misconceptions.||The risk has a high likelihood because the organizations may form the contract in the absence of due diligence.||Formation of a contract that is not viable.||It is serious as it occasions the poor performance or premature termination of the contract.||Execution of due diligence before forming the contract.||Development of contracts that are within the capacity of the parties.||A good study of the parties to the contract.|
|Other Party Selection||Results in the development of contracts that are not practical.||Serious because it can bring the contract to a premature end.||Formation of contracts that are not viable.||The risk is serious as it leads to the failure of the contract to yield the expected outcomes.||Execution of a good study and feasibility of the parties to the contract.||Formation of contracts that produce the expected results.||A good feasibility study of the parties to the contract.|
Mitigation of Risks
Although parties to the contract cannot completely do away with the risks, they can minimize the effects that they present. Since risks are unavoidable, parties to the contract need to minimize the effects and ensure that the deliverables of the contract are practical before entering into it. Moreover, the parties need to understand that the contract cannot be the effect if it has pronounced financial implications. Good diligence on the side of the parties to the contract is significant as it enables the parties to understand if their capacities lead to the smooth execution of the contract. In addition, prior address of aspects regarding consideration, period of execution, and the type of deliverables require solutions before the commencement of a contract.
The Effectiveness of Wild Company Pity Ltd in Risk Mitigation
Wild Company Pity Ltd can mitigate the risks that transpire before, during, and after the successful execution of the contract. The ability to manage the risks associated with the execution of the contracts is effective because of the organization’s character and values. The values of the organization promote transparency, honesty, and truthfulness, which are very important in the effective execution of contracts and the resolution of risks that arise in the absence of these values. Wild Company Pity Limited understands that it cannot eliminate risks in a contract, and therefore, it strives to turn some challenges posed by risks into rewarding opportunities. The company also understands that due diligence is very important since failure to undertake the diligence can lead to losses in the organization.
Analysis of Strategies used in Negotiation
When the one party is unwilling to consent or declines the offer the other party is advancing, the party that presents the offer employs a range of strategies to persuade the other party to consent. In the case of Wild Company Pity Ltd and Castlemania Big 4 Caravan Park, the use of collaborative and compromising strategies to negotiate is appropriate since they are very instrumental in achieving a consensus. Essentially, it is important to ascertain whether the decline is an absolute rejection of the offer or the interests of either party are unmet. In collaborative and compromising strategies, the aim is to ensure that both parties to the contract achieve their objectives and goals, and thus, satisfy all parties.
Achievement of Organisational Objectives Set in the Strategic Plan
Fundamentally, to ensure that negotiations do not lead to financial challenges, contracting parties use strategic plans. The use of collaborative and compromising strategies to negotiate helps the company handle and mitigate risks such as strategy alignment, business case, other party selection, and contract creation. These risks identified at the early stages of the contract need good strategies like the negotiation for effective management. To achieve the objectives of the company, employment of the strategies in a way that not only helps in the achievement of goals but also the attainment of profits and success in the company. Employment of these strategies needs to be creative so that the company achieves its objectives and goals, while the other party becomes satisfied with the outcomes of the contract.
|Key Boilerplates||Reasons for Selecting||Brief Description of Terms and their Functions|
|Parties||Explains the significance of the parties to the contract||Outlines the parties involved in the contract, their roles, and their relationship in the union|
|Interpretation of the agreement||Highlights the contractual conventions agreed upon by the parties, liabilities, and consideration||Provides information about the agreement, positions occupied by the parties, and the extent of liabilities among the parties.|
|Ownership of information property and moral rights||The boilerplate is fundamental because it explains the owner of the objects exchanged during the contract and the rights of each party.||Describes the legality of objects in the contract and the authenticity of ownership titles.|
|Disputes||Describes the procedures of solving problems and disagreements before, during, and after the contract.||Explains the procedures of problem solving and rules regarding the management of a contract and its effective termination in cases of disagreements.|
|Delay and termination||Helps to address issues that can delay or terminate the contract like calamities or catastrophes.||Lists the factors that can lead to termination of the contract maturely or immaturely like catastrophes.|
Boilerplates and their Functions
The boilerplate concerning parties outline the entities involved in the contract. Furthermore, it clarifies the roles of each party and the positions that the parties occupy in the contract. Imperatively, the boilerplate concerning parties inform the contractual parties and legal entities about the individuals involved in the contract and their niches. The boilerplate also explains if one of the parties to the contract can bind another or has power over the other party.
The binding power of the contracting parties happens in the cases where one party gives an offer to another concerning the contract that has its terms laid down with little room for corrections. The boilerplate explains the aspects that govern the contract and the challenges that take place if the provisions in the contract change. Furthermore, the boilerplate interpret the terms in the agreement and the alternatives in cases where the clauses conflict with the interest of the contracting parties. The boilerplate also handles the terms of the agreement, systems of redress, and the contents of the contract.
Boilerplate of ownership deals with issues concerning ownership of the property and title. The boilerplate examines factors regarding the owner of the objects in the contract and their legality. It also highlights the authenticity of the owners and the relationships that they need to create among them and the other parties to the contract. The boilerplate is practical in clarifying issues that cushion the contracting parties from purchasing illegal objects.
Disputes boilerplate relates to the management of conflicts and disagreements that take place in the course of the contract. Indemnity, waiver, liability, damage assessment, and performance guarantee are important elements that boilerplate examines. The boilerplate elucidate the magnitude of liability among the parties, limitation of risks, and assessment of damages. Additionally, the boilerplate outlines the insurance that affirms the performance of the parties towards the expected objectives.
Delay and termination boilerplate deal with aspects regarding events, which are unpredictable and uncontrollable. The boilerplate addresses issues that are beyond the control of the parties to the contract and can lead to delays or termination of the deliverables and execution of the objectives of the contract. In addition, the boilerplate deals with elements that can lead to the termination of a contract successfully or at early stages before the achievement of the expected organizational objectives. The boilerplate also highlights the events that necessitate the termination of a contract.
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If an unforeseen and unpredictable event causes a delay or termination of the contract, the boilerplate cushions the subject party from the liabilities relating to the inconvenience and addresses the affected party. Therefore, the boilerplate is very important as it addresses situations where parties terminate the contract successfully at early stages and the requirements that each of the parties can undertake to facilitate smooth termination. Imperatively, the role played by the boilerplate of delay and termination is primary as it mitigates the challenges associated with issues like due diligence and strategy alignment, as well as financial liabilities to the contract.
Achievements of Functions
Effective application of the boilerplates enables the achievement of the functions stated. Since boilerplates highlight the significance of each party and the roles they are to undertake before, during, and after the contact, their application leads to the achievement of goals and functions. For instance, the boilerplate of parties highlight the involved parties, niches that they occupy, and the kind of relationship they have to develop towards each other. As a result, boilerplates facilitate the easy achievement of functions that companies such as Wild Company Pity Ltd strive to achieve. CEOs, managers, and other stakeholders in the field of business and commerce need to understand the aspects that govern the behaviors of the contracting parties before, during, and after the contract.