COST & SPECIFICATIONS

CONTRACT

CONTRACT DIFINATION
LECTURE 01
2 THE CONTRACT

 WHAT IS THE CONTRACT …

❑ A contract is a legally binding agreement that recognizes and governs the
rights and duties of the parties to the agreement.
❑ A contract is legally enforceable because it meets the requirements and
approval of the law.
❑ An agreement typically involves the exchange of goods, services, money,
or promises of any of those.
❑ In the event of breach of contract, the law awards the injured party access
to legal remedies such as damages and cancellation.

CONTRACT DIFINATION
LECTURE 01
3 CONTRACT CHECKLIST

 Identity of the parties

❑ Individuals or business entities?
❑ If businesses, what type? (partnership, corporation, etc.)
❑ Name of person signing on behalf of the business
❑ Signer's official title
❑ Does he or she have authority to bind the business?
❑ Addresses of the parties
 Purpose(s) of the contract
 Underlying assumptions

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4 CONTRACT CHECKLIST

 Contract terms
❑ In general ❑ Payment terms
❑ Duties of each party ❑ Lump sum, COD, installments …
❑ Rights of each party ❑ Payment due dates
❑ Relevant dates ❑ Taxes
❑ Relevant prices or other dollar amounts ❑ Interest
❑ Relevant quantities ❑ Late fees

CONTRACT DIFINATION
LECTURE 01
5 CONTRACT CHECKLIST

 Warranties  Arbitration clause

 Disclaimers  Governing law
 Limitations on liability  Venue of lawsuits involving the
 Liquidated damages contract

 Confidentiality provision  Statement that contract constitutes

entire agreement
 Indemnification agreement
 Severability of individual provisions
 Default
 Signatures of authorized signatories
 Notarization

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6 INTERIOR DESIGN CONTRACT ISSUED FOR:

 CONSTRUCTION
 DESIGN & CONSULTANCY
 DESIGN & SUPERVISION

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7

THANK YOU
CONTRACT DIFINATION
LECTURE 01