DISCHARGING OR INVALIDATING A CONTRACT
BREACH OF CONTRACT
POSSIBLE DEFENSES
DAMAGE RECOVERY
MEASURING DAMAGES
THE EXPECTATION MEASURE
RELIANCE INTEREST
RESTITUTION
LIMITATIONS
SATISFACTION CLAUSE
AGENCY RELATIONSHIP

Special Update:

Contract law points to note
Privity of contract
Postal rule
Contractual mistakes
Contract Interpretation
Request for Expressions of Interest (RFEI)
Request for Supplier Qualifications (RFSQ)
Vendors of record (VOR)
Repetitive Procurement
A Typical bid evaluation process
Bid Evaluation Team
Discrimination
Code of ethics in the supply chain
Green procurement through Environmental Sourcing
Buy America Act
Treaties and Agreements 

 

Acquisition Planning Contents:

Special Update includes:

Acquisition Planning
Procurement Planning
Contract Management Plan
The Role of a Contract Manager
Alternative Dispute Resolution
 

140 Review Questions on Contract Principles, Acquisition Planning, Contract Administration, and Procurement.

General Business Knowledge contents (note that GB topics are not tested in the exam - they are provided in the study guide for your reference only):

CCCM Exam Tips

Here comes another one:

In contract disputes, a claimant is:

a person who has a demand made against them
a person who asserts a right or demand
a person who countersues
a third party who makes a demand against the seller


It is quite obvious that the third and the fourth choices are surely wrong. The first choice says "who has a demand made against them". The "them" here refers to the disputes. A claimant does not have a demand against the disputes. He does have one against the other party to the contract.

If you understand the logic behind the CCCM questions & choices, you will easily get the wrong answers removed!
 

SAMPLE TEXT on drafting commercial contract

Drafting your contract

The court generally holds the party putting the contract in written form responsible for devising a clear and understandable contract. If the contract is found not sufficiently clear, it is (usually) construed against the party who wrote the contract. Therefore, you must be very careful when drafting your contract.


Setting the order of precedence

When there are multiple different documents involved, you want to have something like this established:

“The provisions of this contract shall govern the relationship of XXX and YYY. In the event of conflicts or inconsistencies between this contract and its exhibits or attachments, such conflicts or inconsistencies shall be resolved by reference to the documents in the following order of priority: first, ; second, ; and third, ;....”


Contract exhibits

If your contract results from an RFP sent to your vendors and there are written clarifications by the vendors, be sure to review these documents to determine if it is appropriate to include them as exhibits to the contract. You want to ensure they will fit into the provision of your contract. You want your version to have precedence in any case.


Time clause

The "time is of the essence" clause should be employed where time is particularly important, that failure to meet specified deadlines is significant enough for terminating the contract for default.


Rewards

The Fixed Price option specifies a firm, fixed price (usually as a lump sum) which is due to the vendor upon successful completion of contracted work. How much it costs the vendor to perform would not be a relevant matter to consider.

The Time and Materials/hourly labor option is a cost-type contract that requires you to pay at specified rates for labor and/or materials and makes it clear that the vendor must complete performance within the ceiling amount specified. For additional protection, you may say something like this:

"Prices shall remain firm through [date]. The Vendor may seek a price increase, not to exceed __% of the then current price, in any succeeding period, by submitting detailed written justification to ..."

For larger contracts, it may be advisable to set up milestones/deliverables, in such a way that the vendor must reach a pre-defined delivery stage in order to receive payment. The milestones must be clearly measurable though.

In any case you want to make it clear that payments pursuant to the contract shall be made as earned unless advanced payment is allowed. Advance payments should only be allowed in limited circumstances.


Incorrect payments

People do make mistakes. You want to protect against careless payment mistakes by saying something like this:

"Incorrect payments to the vendor due to omission, error, fraud, or defalcation shall be recovered from the vendor by deduction from subsequent payments under this contract or other contracts with the vendor."


Legal Authority

To ensure you are dealing with the legally right people, you should have a Legal Authority clause at the end of the contract, saying:

“The Vendor warrants that it possesses the legal authority to enter into this contract and that it has taken all actions required by its procedures, by-laws, and/or applicable law to exercise that authority, and to lawfully authorize its undersigned signatory to execute this contract and to bind the Vendor to its terms. The person(s) executing this contract on behalf of the Vendor warrant(s) that such person(s) have full authorization to execute this contract.’

If the signatory doesn't have the authority, the above provisions would allow you to hold the person signing the contract personally liable for breach of his or her assurances to the contrary.
 

**********************

SAMPLE TEXT on Contract compensation and financing

Talking about the forms of agreement in regards to compensation, a lump sum compensation is a remuneration which establishes a specific total amount payable for the performance of the contractual work. Lump sum compensation would be appropriate if you can establish with high precision the Scope, Character, Complexity and Duration of the work and that just compensation for the contractual work can be evaluated in advance with reasonable accuracy.

Cost plus net fee compensation is a form of reimbursement very popular for consultant contracts. It is basically a combination of a consultant’s actual allowable costs and the net fee as set forth in the agreement. You would want to go for this when the extent of the work cannot be well defined. Payment would be based on the actual allowable costs incurred and the completion percentage times the applicable net fee.

Rate of pay compensation is a type of remuneration which establishes a specific rate of pay in the agreement applicable for each classification of employee. You would want to use this if the indirect costs and profit would be tied directly to extent of services utilized. For this to work the contractual rates for each classification must be carefully defined.

A unit of work compensation is a form of remuneration which establishes a specific unit amount payable for each unit of services performed. It is doable when the unit cost can be determined in advance with reasonable accuracy but the number of units is indefinite. You may especially find it useful for items of additional work.

NOTE: Generally, lump sum type agreements are way more easily administered but are relatively inflexible when dealing with changes in the work. Actual cost agreements would be capable of providing more flexibility but would require relatively more administrative effort.

Product FAQ & Guarantee

Place an order now

Our printed books are distributed primarily through CREATESPACE AMAZON. Page size is 8" x 10", grayscale printing, with font sizing ranging from 10 to 14 (Garamond).