What is force majeure? Different legal systems have developed various theories to deal with the need of contracting parties to excuse themselves from contractual obligations should events beyond the parties control inhibit the said parties from fulfilling the said obligations Force majeure is an example of such a clause in a contract Let’s say you …
A large manufacturing company has begun a project to increase the size of their premises. The procurement team has estimated that if the main supplier fails to complete the project on schedule it will incur cost and losses of $20,000 per day for every day there is a delay Which is the best way to …
At times a party to a contract will not hold their end of the said contract. Usually when a contract is breached the injured party has a number of options to choose from to remedy their position and such include; Refusing further performance of the contract To bring an action for damages To sue on …
Understanding WHAT IS A GUARANTEE Where a subsidiary company is bidding for a contract but it has a poor credit rating, the procurement organization could obtain a guarantee from the parent company to reduce risks. But what is a guarantee? Before we answer the what is a guarantee question, look at this example; Alex and …
ACCEPTANCE RULES to help in Managing Contractual Risk As a buyer you haven’t been paying attention to contract delivery since the contract was created a year ago. Your supplier has not been delivering what is required as per the standards you agreed on, and yet your procurement department has been paying its monthly invoices for …
Buy sell agreements are common in procurement routines. These sorts of activities do, in fact, define the procurement process. The issue is ensuring that the sale of goods contract one has got him/herself in is effective since these contracts, whether they are sale contract or agreement to sell, determine how ownership is to pass from …
In buy and sell agreement what one pays for or what one is really selling, when dealing with goods is title. Whenever you buy or sell items, e.g. a phone or complicated piece of machinery, what you are doing, as far commercial law or sale of goods contracts to be specific, is concerned is transferring …
WHAT IS A SALE OF GOODS CONTRACT? Introduction When you are in business you are providing, Goods, services or both. If you deal in goods then the agreement between you and the parties you are dealing with will be summarized by a contract, specifically sale of goods contracts. The question then, I suppose, is WHAT …
Relationships that companies have with the parties the deal with, say suppliers in this case, are often summarized by contracts Success in managing contracts will therefore mean: Increase in revenue Decrease in cost Contract management in procurement is an ongoing process that ensures suppliers and buyers stick to their agreed contractual obligations as well as …
