SlideShare uma empresa Scribd logo
1 de 27
LEGAL FRAMEWORK FOR PROCUREMENT –
EMERGING CONTEMPORARY ISSUES WITH THE
PUBLIC
“From simple mistake to deliberate act:
Adapting the response Government contracts
can give rise to mistakes, anomalies, fraud,
and misappropriation of public funds or
instances of corruption. Some of these
problems can be avoided through adequate
guidance for public procurement officials.”
- http://www.oecd.org/gov/ethics/48994520.pdf
JUSTIFICATION
WHAT IS A CONTRACT ?WHAT IS A CONTRACT ?
COMPONENTS OF A VALID CONTRACTCOMPONENTS OF A VALID CONTRACT
OFFER/PROPOSALOFFER/PROPOSAL
LEGAL CAPACITY TO CONTRACTLEGAL CAPACITY TO CONTRACT
AGREEMENT SHOULD NOT BE VOID ORAGREEMENT SHOULD NOT BE VOID OR
VOIDABLEVOIDABLE
WHAT IS VOID AGREEMENT?
DISCHARGE OF CONTRACTSDISCHARGE OF CONTRACTS
ADVANTAGESADVANTAGES
CAN BE COST-EFFECTIVE
•The use of contract manufacturers means
that the hiring firm does not need to
purchase expensive manufacturing
facilities, equipment, machinery, raw
materials or hire specialized labor.
•This not only allows the hiring firm to
focus solely on sales, advertising and
marketing but also allows a firm that is
comparatively more efficient at
manufacturing to carry out the process.
•As a result, hiring firms often benefit
from economies of scale and the
purchasing power of large manufacturers.
All of these factors lower production
costs.
ENCOURAGES
CONSISTENCY
•Having a written agreement provides
one set of procedures for everyone to
follow. For example, if a group rotates
its secretary and treasurer, each person
might track money and keep records a
little differently, which could create an
administrative muddle.
•Providing the secretary and treasurer
with written procedures will help
prevent that problem
HELPS PREVENT
AMNESIA
• Putting information and
decisions on paper means
keeping less of it in your head;
there's a limit to how many
details we can keep organized
in our brains.
•Even with people whom you
trust completely, you may
have had the experience of
remembering the same event
or conversation differently.
LEADS TO A WELL-
THOUGHT-OUT
PLAN
• Putting ideas in writing helps
a group think through details
that might not have been
ironed out during discussions.
•Plans that seem really great
over a glass of wine don't
always make as much sense
when you lay them out on
paper.
DISADVANTAGESDISADVANTAGES
TIME AND MONEY
•Perhaps the main disadvantage to
the use of contracts to reduce risk is
that drawing up contracts takes both
time and money. To construct an
airtight contract, a company has to
employ the services of a lawyer to
draft the contracts, and lawyers are
seldom inexpensive.
•In addition, focusing on contracts
draws time away from other
activities that could help grow the
business.
LITIGIOUS ATMOSPHERE
•Making every person who deals with
an organization sign contracts that are
designed to reduce the company's risk
can create an atmosphere in which
everyone has their hackles up.
•This may not only breed suspicion, but
it can actually increase the likelihood of
a lawsuit, as people forced to sign these
contracts may seek the counsel of a
lawyer they wouldn't otherwise
approach.
BINDING CONTRACTS
•Once a contract is signed with a
manufacturer, the hiring firm
essentially calls all the shots. This can
lead to serious problems for the
reputation of the manufacturer if the
wrong firm is partnered with.
•Consequently, through no fault of
their own a manufacturer can be linked
to an inferior product, possibly
damaging their future business
prospects.
PRESSURE TO DELIVER
•Due to unforced delays, the parties
are left with less time to perform the
work. The pressure to deliver in less
time reciprocates itself in the reduced
quality of the work.
A FEW MORE IMPORTANT POINTS TO GIVEA FEW MORE IMPORTANT POINTS TO GIVE
THE ESSENCE OF LEGAL ASPECTS.THE ESSENCE OF LEGAL ASPECTS.
In each of the following examples, ask yourself if
there is mutual consideration?
 You order a book of Amazon.com. Your credit card
is charged, but no book ever shows up.
 Was there a legally enforceable contract?
 You order a book of Amazon.com. Your credit card
is charged, but no book ever shows up.
 Was there a legally enforceable contract?
 Yes, you agreed to pay Amazon.com money and
they agreed to send you a book.
 Last year, your uncle promised you an iPhone for
your 18th
birthday. When you turned 18, he gave
you his old broken basic cell phone.
 Was there a legally enforceable contract?
 Last year, your uncle promised you an iPhone for
your 18th
birthday. When you turned 18, he gave
you his old broken basic cell phone.
 Was there a legally enforceable contract?
 No, while your uncle made a promise, he did not
receive any consideration in return. Consideration
has to be more than good feelings.
 You signed up for a week long summer basketball
camp which cost $100. You paid and went to the
camp. When you got to the camp, they just had
you watch football movies all day.
 Was there a legally enforceable contract?
 You signed up for a week long summer basketball
camp which cost $100. You paid and went to the
camp. When you got to the camp, they just had
you watch football movies all day.
 Was there a legally enforceable contract?
 Yes. You agreed to pay money to the camp and
they were supposed to give you basketball training.
Lagos procurement legal framework  for procurement - By Adelani Lany-Ayoade

Mais conteúdo relacionado

Semelhante a Lagos procurement legal framework for procurement - By Adelani Lany-Ayoade

legal aspects of a contract (indian contract)
legal aspects of a contract (indian contract)legal aspects of a contract (indian contract)
legal aspects of a contract (indian contract)Ajay Singh
 
How to negociate #contracts as a #startup & do it like a boss
How to negociate #contracts as a #startup & do it like a boss How to negociate #contracts as a #startup & do it like a boss
How to negociate #contracts as a #startup & do it like a boss Funding Roadshow
 
Contracts - A Primer 20150421
Contracts - A Primer 20150421Contracts - A Primer 20150421
Contracts - A Primer 20150421James Kosa
 
City of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing ContractorCity of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing ContractorCity of Salina
 
City of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing ContractorCity of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing ContractorCity of Salina
 
Structuring Effective Buy-Sell Agreements
Structuring Effective Buy-Sell AgreementsStructuring Effective Buy-Sell Agreements
Structuring Effective Buy-Sell AgreementsChris Mercer
 
Auto Leasing Guide Part 1
Auto Leasing Guide Part 1Auto Leasing Guide Part 1
Auto Leasing Guide Part 1Amuro Wesley
 
Get IT in Writing: The IT Pro's Guide to Essential Contracts
Get IT in Writing: The IT Pro's Guide to Essential ContractsGet IT in Writing: The IT Pro's Guide to Essential Contracts
Get IT in Writing: The IT Pro's Guide to Essential ContractsInsureon
 
Contracts & Mistakes
Contracts & MistakesContracts & Mistakes
Contracts & Mistakesprimafacie
 
Contracts & Top Mistakes
Contracts & Top MistakesContracts & Top Mistakes
Contracts & Top Mistakesprimafacie
 
15 top ways to save money.
15 top ways to save money.15 top ways to save money.
15 top ways to save money.vipinkumar298350
 
How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...
How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...
How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...Floyd Arthur
 
Do You Know Everything You Had to Find out about Insurance coverage?
Do You Know Everything You Had to Find out about Insurance coverage?Do You Know Everything You Had to Find out about Insurance coverage?
Do You Know Everything You Had to Find out about Insurance coverage?gustykeeper4608
 
Insurance Coverage: Everything You Had to Know And Absolutely nothing You Do not
Insurance Coverage: Everything You Had to Know And Absolutely nothing You Do notInsurance Coverage: Everything You Had to Know And Absolutely nothing You Do not
Insurance Coverage: Everything You Had to Know And Absolutely nothing You Do notpanoramictheme643
 
15 top ways to save money
15 top ways to save money15 top ways to save money
15 top ways to save moneyMeigo Jurioo
 
21stcenturyretainer mbsa
21stcenturyretainer mbsa21stcenturyretainer mbsa
21stcenturyretainer mbsaCarolyn Elefant
 

Semelhante a Lagos procurement legal framework for procurement - By Adelani Lany-Ayoade (18)

legal aspects of a contract (indian contract)
legal aspects of a contract (indian contract)legal aspects of a contract (indian contract)
legal aspects of a contract (indian contract)
 
How to negociate #contracts as a #startup & do it like a boss
How to negociate #contracts as a #startup & do it like a boss How to negociate #contracts as a #startup & do it like a boss
How to negociate #contracts as a #startup & do it like a boss
 
Contracts - A Primer 20150421
Contracts - A Primer 20150421Contracts - A Primer 20150421
Contracts - A Primer 20150421
 
City of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing ContractorCity of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing Contractor
 
City of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing ContractorCity of Salina Brochure-How To Hire a Roofing Contractor
City of Salina Brochure-How To Hire a Roofing Contractor
 
Structuring Effective Buy-Sell Agreements
Structuring Effective Buy-Sell AgreementsStructuring Effective Buy-Sell Agreements
Structuring Effective Buy-Sell Agreements
 
Auto Leasing Guide Part 1
Auto Leasing Guide Part 1Auto Leasing Guide Part 1
Auto Leasing Guide Part 1
 
Get IT in Writing: The IT Pro's Guide to Essential Contracts
Get IT in Writing: The IT Pro's Guide to Essential ContractsGet IT in Writing: The IT Pro's Guide to Essential Contracts
Get IT in Writing: The IT Pro's Guide to Essential Contracts
 
Contracts & Mistakes
Contracts & MistakesContracts & Mistakes
Contracts & Mistakes
 
Contracts & Top Mistakes
Contracts & Top MistakesContracts & Top Mistakes
Contracts & Top Mistakes
 
15 top ways to save money.
15 top ways to save money.15 top ways to save money.
15 top ways to save money.
 
Our best public adjuster
Our best public adjusterOur best public adjuster
Our best public adjuster
 
Our best public adjuster
Our best public adjusterOur best public adjuster
Our best public adjuster
 
How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...
How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...
How to Find Affordable Homeowners Insurance: Tips from the Experts (PPT) By F...
 
Do You Know Everything You Had to Find out about Insurance coverage?
Do You Know Everything You Had to Find out about Insurance coverage?Do You Know Everything You Had to Find out about Insurance coverage?
Do You Know Everything You Had to Find out about Insurance coverage?
 
Insurance Coverage: Everything You Had to Know And Absolutely nothing You Do not
Insurance Coverage: Everything You Had to Know And Absolutely nothing You Do notInsurance Coverage: Everything You Had to Know And Absolutely nothing You Do not
Insurance Coverage: Everything You Had to Know And Absolutely nothing You Do not
 
15 top ways to save money
15 top ways to save money15 top ways to save money
15 top ways to save money
 
21stcenturyretainer mbsa
21stcenturyretainer mbsa21stcenturyretainer mbsa
21stcenturyretainer mbsa
 

Último

Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...Roland Driesen
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxWorkforce Group
 
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableCall Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableSeo
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfAdmir Softic
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Centuryrwgiffor
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...lizamodels9
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756dollysharma2066
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...amitlee9823
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with CultureSeta Wicaksana
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsP&CO
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdfRenandantas16
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentationuneakwhite
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayNZSG
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Neil Kimberley
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756dollysharma2066
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMANIlamathiKannappan
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxpriyanshujha201
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...amitlee9823
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...daisycvs
 

Último (20)

Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableCall Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
Forklift Operations: Safety through Cartoons
Forklift Operations: Safety through CartoonsForklift Operations: Safety through Cartoons
Forklift Operations: Safety through Cartoons
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
 

Lagos procurement legal framework for procurement - By Adelani Lany-Ayoade

  • 1. LEGAL FRAMEWORK FOR PROCUREMENT – EMERGING CONTEMPORARY ISSUES WITH THE PUBLIC
  • 2. “From simple mistake to deliberate act: Adapting the response Government contracts can give rise to mistakes, anomalies, fraud, and misappropriation of public funds or instances of corruption. Some of these problems can be avoided through adequate guidance for public procurement officials.” - http://www.oecd.org/gov/ethics/48994520.pdf JUSTIFICATION
  • 3. WHAT IS A CONTRACT ?WHAT IS A CONTRACT ?
  • 4. COMPONENTS OF A VALID CONTRACTCOMPONENTS OF A VALID CONTRACT
  • 6.
  • 7. LEGAL CAPACITY TO CONTRACTLEGAL CAPACITY TO CONTRACT
  • 8.
  • 9.
  • 10. AGREEMENT SHOULD NOT BE VOID ORAGREEMENT SHOULD NOT BE VOID OR VOIDABLEVOIDABLE WHAT IS VOID AGREEMENT?
  • 12.
  • 13.
  • 14. ADVANTAGESADVANTAGES CAN BE COST-EFFECTIVE •The use of contract manufacturers means that the hiring firm does not need to purchase expensive manufacturing facilities, equipment, machinery, raw materials or hire specialized labor. •This not only allows the hiring firm to focus solely on sales, advertising and marketing but also allows a firm that is comparatively more efficient at manufacturing to carry out the process. •As a result, hiring firms often benefit from economies of scale and the purchasing power of large manufacturers. All of these factors lower production costs. ENCOURAGES CONSISTENCY •Having a written agreement provides one set of procedures for everyone to follow. For example, if a group rotates its secretary and treasurer, each person might track money and keep records a little differently, which could create an administrative muddle. •Providing the secretary and treasurer with written procedures will help prevent that problem
  • 15. HELPS PREVENT AMNESIA • Putting information and decisions on paper means keeping less of it in your head; there's a limit to how many details we can keep organized in our brains. •Even with people whom you trust completely, you may have had the experience of remembering the same event or conversation differently. LEADS TO A WELL- THOUGHT-OUT PLAN • Putting ideas in writing helps a group think through details that might not have been ironed out during discussions. •Plans that seem really great over a glass of wine don't always make as much sense when you lay them out on paper.
  • 16. DISADVANTAGESDISADVANTAGES TIME AND MONEY •Perhaps the main disadvantage to the use of contracts to reduce risk is that drawing up contracts takes both time and money. To construct an airtight contract, a company has to employ the services of a lawyer to draft the contracts, and lawyers are seldom inexpensive. •In addition, focusing on contracts draws time away from other activities that could help grow the business. LITIGIOUS ATMOSPHERE •Making every person who deals with an organization sign contracts that are designed to reduce the company's risk can create an atmosphere in which everyone has their hackles up. •This may not only breed suspicion, but it can actually increase the likelihood of a lawsuit, as people forced to sign these contracts may seek the counsel of a lawyer they wouldn't otherwise approach.
  • 17. BINDING CONTRACTS •Once a contract is signed with a manufacturer, the hiring firm essentially calls all the shots. This can lead to serious problems for the reputation of the manufacturer if the wrong firm is partnered with. •Consequently, through no fault of their own a manufacturer can be linked to an inferior product, possibly damaging their future business prospects. PRESSURE TO DELIVER •Due to unforced delays, the parties are left with less time to perform the work. The pressure to deliver in less time reciprocates itself in the reduced quality of the work.
  • 18. A FEW MORE IMPORTANT POINTS TO GIVEA FEW MORE IMPORTANT POINTS TO GIVE THE ESSENCE OF LEGAL ASPECTS.THE ESSENCE OF LEGAL ASPECTS.
  • 19.
  • 20. In each of the following examples, ask yourself if there is mutual consideration?
  • 21.  You order a book of Amazon.com. Your credit card is charged, but no book ever shows up.  Was there a legally enforceable contract?
  • 22.  You order a book of Amazon.com. Your credit card is charged, but no book ever shows up.  Was there a legally enforceable contract?  Yes, you agreed to pay Amazon.com money and they agreed to send you a book.
  • 23.  Last year, your uncle promised you an iPhone for your 18th birthday. When you turned 18, he gave you his old broken basic cell phone.  Was there a legally enforceable contract?
  • 24.  Last year, your uncle promised you an iPhone for your 18th birthday. When you turned 18, he gave you his old broken basic cell phone.  Was there a legally enforceable contract?  No, while your uncle made a promise, he did not receive any consideration in return. Consideration has to be more than good feelings.
  • 25.  You signed up for a week long summer basketball camp which cost $100. You paid and went to the camp. When you got to the camp, they just had you watch football movies all day.  Was there a legally enforceable contract?
  • 26.  You signed up for a week long summer basketball camp which cost $100. You paid and went to the camp. When you got to the camp, they just had you watch football movies all day.  Was there a legally enforceable contract?  Yes. You agreed to pay money to the camp and they were supposed to give you basketball training.