Post 265 – by Gautam Shah
A contract document consists of certain components placed in a hierarchy. The document consists of following parts:
1 Name and identity of parties signing the contract. Name, address, age, sex, nationality, residency, eligibility and capacity (individual, a power-of-attorney holder, authorized representative of a group, authorized signatory, government official), a licensee or a permit holder, group’s identification (formation, constitution, registration, recognition, taxation status), medical declaration (sound mind and body), solvency status.
2 Intentions of the first party to cause the contract (generally the first party is the person who provides the consideration and the person who provide the service is called the second party – but not as a rule). Eligibility of the first party (rights to property, ownership, easement rights, tenancy rights, permits, licenses, quotas, grant, sanctions). Duties of first party (providing data, permissions, items, services, etc.)
3 Competence and readiness of second party to serve the cause of the contract. Extent and nature of rights, duties etc. of the second party for the cause of the contracted job. Qualifications, experience, Man and Machine resources.
4 Joint declaration by both parties that according to their knowledge and understanding, the contract is enforceable and legal.
5 Relationship of consideration to the tasks, in parts, groups of parts, and as a whole (schedule of rates, time and quantum schedules, guarantees and liabilities, risk coverage). Fines, Late delivery charges, Rewards.
6 Conditions, situations, acts, and omissions, that can debilitate the contract, remedial measures to correct them, rights to raise and settle such issues, unilateral acts, effects of such an exercise and acceptability of the result.
7 Corrections and attestation modes.
8 Time schedules: Date of signing the contract (dates of various signatures), Date and conditions (if any) for the enactment of the contract, Date schedules for things to be provided by the first party and second party, Schedules of start, continuance and completion or termination of the contract.
9 List and details of other related documents that form part of the contract, and support or corroborate the contract. Details of any action to be caused, being caused, or already caused by the contract.
10 List, details and certified copies of other contracts, MoUs, that form the basis of this contract, or must be implemented as a follow-up action.
11 Mode of registration of the contract (where required by law and other bodies)
12 Signatories of the contract, involved parties, witnesses, government officials, dates, place, time, jurisdiction, etc.
It should be remembered that a Contract is a document of initiation of relationship between two people, as individuals, or as authorized-recognized representatives of their groups or organizations. A contract once drawn, spoken out, communicated in presence of witnesses, even if not registered with an authority, is a binding document to both parties. Most countries have Laws of Arbitration to deal with issues arising out of the contractual relationship. Such laws usually have a provision that supercedes, any contradicting provisions of the contract. No contractual relationship can be beyond the state laws.