resolve business disputes and select and prepare a construction contract intro to on-line...

Cert IV - M. S. Martin January 2012

Resolve Business Disputes and Select and Prepare a Construction Contract

Intro to On-Line competencies

Lesson Two


Todays Lesson

• Review Contracts• Continue contract activities, which will

incorporate dispute resolution

• Introduce on-line competencies, handout on registration to web etc.


Lesson 2 – Contracts / Disputes

Chapter 1 – Contract Law


A Building Contract

• A building contract is where one person, the builder, agrees to supply labour and materials for the construction of a building (or other building works) for the benefit of the client who agrees to pay for such works.

• Contracts are vital to the construction process


Contracts and Disputes

• By writing a contract, each party knows its rights and responsibilities

• if there is a dispute, it may be resolved without going to court; or if it does go to court it will be sorted out quicker and therefore more cheaply


The Basics of Contract LawChapter One – from page 2

• You may have a simple understanding of a contract as a piece of paper that contains an agreement, signed by say a builder and a client

• For the law to recognise this as a contract three factors are required to be present:

• an offer• an acceptance• and a consideration


Offer

An offer is a description of the terms under which a person is prepared to enterinto a contract with another

An offer should ? Review your text, what ?


Acceptance

Acceptance is the clear and final agreement by the other party to the terms ofoffer made. Once an offer has been made, and it has been accepted then an‘agreement’ has been made.

The offer and….. ? What else does the text say ?


Activity One

• A concrete contractor and builder are talking at the hardware store. The builder mentions that he can’t find a concreter to do a large coloured patio as part of building he is doing.

• The concrete contractor offers to make a coloured………… review the text and discuss


Answer to Activity One

• The answer is that by the builder saying “…$30,000 was a bit much” he has rejected the offer, and it is not possible to make an acceptance of any agreement

• The builder and the first concreter do not have a contract

• The first contractor can not bill the builder for $30,000.• The first concreter may be able to argue in court that

he suffered ‘damages’ and claim those costs back• Damages might ……….. ? Review the remainder of the

answer…


ConsiderationYou can think of a consideration as ‘the price for which a promise ispurchased’

Proper consideration must have existed in the mind of the party making the offer, for a contract to be valid. In many contracts the price is the consideration or an important part of the consideration.


Activity Two

• Offer, Acceptance, Consideration

• A carpenter and builder meet at the pub Saturday night and the carpenter mentions ………… read on


My Answers to Activity Two

• Offer (a description of the terms…) therefore: – The description provided by the builder to frame up the house

• Acceptance (the clear and final agreement by the other party to the terms of offer made…) therefore:– The carpenter said ‘yes’ to a lump sum for his work

• Consideration (Proper consideration must have existed in the mind of the party making the offer.. The price an important part of the consideration….) therefore:– Here lies the grey area for me, the carpenter realises the job is

more complicated… did the builder describe it sufficiently ? Its said that the builder answered every question…? Hence in my opinion, we now have a dispute


References

• Competency text for ‘Resolve Business Disputes and Select and Prepare a Construction Contract’

• Websites as listed below http://www.fairtrading.nsw.gov.au/default.htmlhttp://www.google.com.au/imghp?hl=en&tab=wi

http://www.fairtrading.nsw.gov.au/default.html

http://www.google.com.au/imghp?hl=en&tab=wi

http://www.google.com.au/imghp?hl=en&tab=wi

resolve business disputes and select and prepare a construction contract intro to on-line...

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