is the party that makes the promise.
Promisor
is on the receiving end of the promise
Promisee
benefits from a contract by acquiring rights under the contract and has the ability to enforce the contract once those rights have vested.
Intended beneficiary
When a non-party to a contract receives benefit from the agreement directly.
Intentional beneficiary
Important things must be shown in the Contract
- Name of both parties
- price
- clause that expressly states agreement to the terms of the contract
Elements of the Contract
- An offer
- Acceptance of the offer
- Consideration, like money or something else of value to the parties
- Mutual intent of both parties to fulfill the contract promises
- Capacity
- Legally enforceable terms that do not violate law
Four Common types of Construction
Contract
- lump sum
- cost plus
- time and material
- unit pricing
specify a total fixed price that will be paid for all construction work. This type of contract is most commonly used when the owner wants to evade dealing with change orders for unspecified work.
fixed price / lump sum
designate the buyer to pay the costs of construction, purchases, and other expenses produced from construction activity. This type of contract is most commonly used when the scope hasn’t been clearly defined.
cost plus
the owner pays the contractor an agreed amount over and above the documented cost of work.
cost plus fixed fee
owner pays greater than 100 percent of the documented cost, usually requiring detailed expense accounting. This type of contract is suitable for emergency work like difficulties in foundation conditions, construction of expensive structure etc.
cost plus percentage of cost
involve the owner paying for the time and materials spent on a project. This type of contract is most commonly used when the project scope is small or unclear.
time and material
involve the contractor determining a specific price for a certain task. This type of contract is most commonly used on repetitive or public works projects.
unit pricing
contract that is signed and has the (wax) seal of the signer attached
special contracts
