Contract Creation Management

Contract Creation Management

We use contracts for different transactions and activities that we do every day. Without the use of contracts there would be no way to enforce the rules and regulations needed in society. Many activities we do each day hold many emotions and although people may say one thing at the beginning of an agreement ideas and mind sets can be changed and without a contract, it could lead to a messy ending. A contract is an agreement is made by two or more parties. A contract can be enforced by the law and is a promise to do something. It will be recognized by the law (Cheeseman, 2010).

Contract Formation

During the initial negotiations of the contract both companies came together to try to work out an agreement and contract. It was difficult from the very beginning of the process as both companies could not agree on clauses and sections of the contract. Because there was so much conflict, portions of the contact were not entirely clear to both parties. Eventually the contract was completed but was not completely clear to either side. It is so important to ensure that both sides are not only in agreement but that they can fully understand each clause and portion of a contract. The simulation provided the opportunity to see how each action caused a reaction and created the ability to see the consequences of the business. A contract is something that should not be created if the offer is not agreed upon or accepted. During this contract formation there was some uncertainty that should have been cleared up before the contract was agreed upon.

During the creation of this contract both parties should have followed the four elements of a contract (Cheeseman, 2010). The first element is agreement. Both parties were dealing with some ambiguous sections. There were many conflicts involved in during the creation of the contract. Although a contract was signed, both parties should have participated in some conflict resolution to ensure they both understood the contract and in agreement with the terms. The second element is consideration. The contract needs to be supported by a bargained for consideration (Cheeseman, 2010). This could include things like money, property, services, and goods. The third element is contractual capacity. All parties involved need contractual capacity to ensure that the contract is enforceable. Last each contract needs to have a lawful object. This object must be legal otherwise it is voidable (Cheeseman, 2010).

Contract Dispute Resolution

During the simulation, the techniques used for contract dispute resolution helped me to reach a good compromise in the contract. I used direct client contact through using a project manager from the client company to serve as a quality control