Contracts
Contracts under seal were applied traditionally, and involved the agreement between different parties being signified by a binding seal on the contract document. This ensured that every party in the contract assumed legal responsibility and liability without having to offer any legal detriment. The importance of contracts under seal has diminished over the years with the acceptance of some of the informal contracts by law (Hearn, 2011).
An implied contract may be established where there is a mutual agreement to assume responsibility even in the absence of words (Kulakowski & Chronister, 2008). This should not always mean that a contract, which is implied by law, must be an implied contract.
An express contract is characterized by a statement of terms by all the parties during its formation. These terms have to go through the normal process of offer and acceptance where all parties must have consent over the terms of the contract while being of sound mind (Schinasi, 2006).
An executed contract identifies a particular act that the parties involved are not obligated to perform. This means that in the case of completion of the underlying act as per the contract agreement, the contract ceases to apply and is assumed to be null and void.
Bilateral and unilateral contracts involve the exchange of mutual promises over a particular act. Where all the parties make reciprocal promises, it is considered a bilateral contract, but where only one party is bound by his or her promise it is called a unilateral contract (Kulakowski & Chronister, 2008).
Unconscionable contracts are identified to be in favor of a superior party and unjust to the other parties. These involve provisions that no mentally competent individual may be in a position to accept, which means most of the victims of such contracts are those who do not have an understanding of the subject matter (Hearn, 2011). The applicability of such a contract is identified differently by different courts in the remedy of injured parties who have been exploited under the contract.
Adhesion contracts are presented by a superior party to another party and require adherence to the terms of the contract the choice in this case is usually acceptance or rejection of the terms with no room for negotiation whatsoever (Schinasi, 2006).
An aleatory contract is an agreement between parties that remains inadmissible until a particular event occurs. An example is an insurance contract bound by the occurrence of a particular loss.
The perfect contact
The development of government contracts has to be in line with the set government transaction laws such as procurement laws and labor laws (Hearn, 2011). This ensures that there is a basis for public accountability unlike in the case of contracts between two private entities. This is also identified under the statutes of frauds as they are outlined in the public accountability regulations. The following is an example of a perfect contract between a government officer and a contractor.
Subject matter (…………………………………………..).
A
I,…………………………………….., (Title of the Receiver of Revenue),…………………………….. hereby authorize………………………………………. to sign the contract between the ……………………………………….. office and……………………………………………………………………………. for
(Brief description of the particular contract)
(Signed)…………………………………………………………………
(Title of the Receiver of Revenue).
B
I,……………………………………………….., Title of the Receiver of Revenue,…………………………………….., hereby authorize…………………………………., to sign on behalf of the ………………………………….(Indicate public office) any contract (in his/her department) below a value of………………………………………….., (or as the case may be).
(Signed)
…………………………………………………………………
(Title of the Receiver of Revenue).
References
Hearn, E. (2011). Federal Acquisition and Contract Management. New York: Hearn Associates.
Kulakowski, E, & Chronister, L. (2008). Research Administration and Management. New York: Jones & Bartlett Publishers.
Schinasi, K. (2006). Contract Management: Increased Use of Alaska Native Corporation’s Special 8(a) Provisions Calls for Tailored Oversight. Upper Saddle River: DIANE Publishing.