Private Sector Standard form of Contract

Question 1

Who makes up the Liaison Committee?

Answer 1

Originally, the RIAI, the CSI & the CIF. Later joined by EI & ACEI

Question 2

Name some functions of the Liaison Committee

Answer 2

1. Recommends amendments to RIAI Construction contract
2. Recommendations for change of practise such as
   Tendering Procedures, BOQs, daywork rates and relationship matters between members themselves.

Question 3

Name the 7 essential elements of a contract.

Answer 3

1. Agreement between parties
2. Offer and Acceptance of offer
3. Consideration to pass between parties
4. Intention to create legal relations
5. Genuine consent of the parties
6. Legal capacity to enter contract
7. Legality of contract itself

Question 4

Discuss - An Agreement between Parties

Answer 4

1. Is essential between the two parties
2. Not essential to have it written but it is advisable.
3. Contract terms should be precisely worded.
4. Courts are primarily concerned with what is written down.
5. Courts cannot change terms
6. Agreement reached when an offer by one party is accepted by another party.

Question 5

Discuss Offer & Acceptance

Answer 5

1. To form a contract there must be “offer by one party” & “Acceptance of terms by another party”

Question 6

Discuss Consideration

Answer 6

1. This is what each party gets from the contract
2. Payment of money for goods and services
3. An exchange or promise to do something
4. Most have some economic value
5. Law is not concerned with the margin +/- it will be deemed good consideration if given on free will.

Question 7

What are the 2 distinct types of agreement?

Answer 7

1 - Domestic Agreement - Presumed that no intention to enter legal relations. An Agreement that is not legally binding.
2 - Commercial Agreement - Presumed by courts that the intention is to create legal relations

Question 8

What should Agreements/Contract be free from

Answer 8

1. Misrepresentation
2. Mistake
3. Duress
4. Undue Influence

Question 9

What are the 3 categories of Misrepresentation

Answer 9

1. Fraudulent
2. Negligent
3. Innocent

Question 10

Name the three kinds of Mistake (legal definition)

Answer 10

1. Common mistake
2. Mutual Mistake
3. Unilateral Mistake

Question 11

What are the types of Genuine Consent of Parties

Answer 11

1 - Duress - Actual or threatened violence to his person but not his goods
2 - Undue Influence -

Question 12

What is the Legality of Contract

Answer 12

You cannot contract for illegal activity such as Building without Planning Permission, Sale of illegal items (drugs), Immoral Acts

Question 13

Name some parties that are not allowed to enter contracts ( LEGAL CAPACITY )

Answer 13

1. Under 18
2. Under the influence
3. Persons of unsound mind
4. Convicts under sentence
5. A Bankrupt Person

Question 14

What are the 5 levels of Dispute Resolution Proceedures

Answer 14

1. Mediation
2. Conciliation
3. Adjudication
4. Arbitration
5. Litigation