Legal and Contractual Preparations in Purchasing Case Study 2022
Added on 2022-10-10
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RUNNING HEAD: Legal and Contractual Preparations in Purchasing
Legal and Contractual
Preparations in Purchasing
Legal and Contractual
Preparations in Purchasing
Legal and Contractual Preparations in Purchasing
Executive Summary
Sale and purchase of agreement are enforceable by laws. This assignment will discuss about
the legal provision relevant to the contract management. This assignment will evaluate the
steps and provision applied in an agreement to make a contract enforceable by law. This
assignment will discuss the facts and decision of two cases naming Amey Birmingham
Highways Ltd (Claimant/ Respondent) And Birmingham City Council (Defendant/ Appellant
and Emirates Trading Agency LLC V/s Prime Mineral Exports Private Limited. This report
will discuss the essential elements of the contract and legal rights and obligation of each party
entering into the contract. This report is a critical evaluation of the damages to the parties,
provision regarding breach of contract and the remedies available for the parties in case of
break of the bond and the negotiation management in the sustainable procurement of the
contracts.
1 | P a g e
Executive Summary
Sale and purchase of agreement are enforceable by laws. This assignment will discuss about
the legal provision relevant to the contract management. This assignment will evaluate the
steps and provision applied in an agreement to make a contract enforceable by law. This
assignment will discuss the facts and decision of two cases naming Amey Birmingham
Highways Ltd (Claimant/ Respondent) And Birmingham City Council (Defendant/ Appellant
and Emirates Trading Agency LLC V/s Prime Mineral Exports Private Limited. This report
will discuss the essential elements of the contract and legal rights and obligation of each party
entering into the contract. This report is a critical evaluation of the damages to the parties,
provision regarding breach of contract and the remedies available for the parties in case of
break of the bond and the negotiation management in the sustainable procurement of the
contracts.
1 | P a g e
Legal and Contractual Preparations in Purchasing
Contents
Introduction............................................................................................................... 3
Legal aspects of purchasing........................................................................................... 3
Offer................................................................................................................. 3
Acceptance......................................................................................................... 4
Lawful consideration............................................................................................. 4
Purpose to create legal relations................................................................................4
Capacity............................................................................................................. 5
Certainty of contracts............................................................................................. 5
Negotiation and drafting principles of purchase contract........................................................5
Negotiation............................................................................................................ 5
Drafting rules in purchase agreement.............................................................................6
Terms and clauses of purchasing contract..........................................................................6
Implied and expressed terms of contract.........................................................................6
Implied terms.......................................................................................................... 7
Performing and enforcing purchasing contracts...................................................................7
Sustainability and ethical consideration related to purchasing..................................................8
Sustainable obtaining................................................................................................ 8
The principles of “green/ethical” purchasing activities.......................................................8
Legal rights of the parties and procurement in purchase agreement...........................................8
EU procurement procedures and practices......................................................................9
Remedies and damages for contract breach........................................................................9
Equitable remedies................................................................................................. 10
Case studies............................................................................................................. 11
Recommendations..................................................................................................... 15
Conclusion.............................................................................................................. 16
References.............................................................................................................. 17
2 | P a g e
Contents
Introduction............................................................................................................... 3
Legal aspects of purchasing........................................................................................... 3
Offer................................................................................................................. 3
Acceptance......................................................................................................... 4
Lawful consideration............................................................................................. 4
Purpose to create legal relations................................................................................4
Capacity............................................................................................................. 5
Certainty of contracts............................................................................................. 5
Negotiation and drafting principles of purchase contract........................................................5
Negotiation............................................................................................................ 5
Drafting rules in purchase agreement.............................................................................6
Terms and clauses of purchasing contract..........................................................................6
Implied and expressed terms of contract.........................................................................6
Implied terms.......................................................................................................... 7
Performing and enforcing purchasing contracts...................................................................7
Sustainability and ethical consideration related to purchasing..................................................8
Sustainable obtaining................................................................................................ 8
The principles of “green/ethical” purchasing activities.......................................................8
Legal rights of the parties and procurement in purchase agreement...........................................8
EU procurement procedures and practices......................................................................9
Remedies and damages for contract breach........................................................................9
Equitable remedies................................................................................................. 10
Case studies............................................................................................................. 11
Recommendations..................................................................................................... 15
Conclusion.............................................................................................................. 16
References.............................................................................................................. 17
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Legal and Contractual Preparations in Purchasing
Introduction
Contract simply means an acceptance of the agreement that is enforceable by law. Agreement
is the mixture of proposal and the approval. An offer is made and accepted by the other
becomes an agreement and this agreement becomes a contract when it is enforced by the law.
Hence an agreement is enforceable by law is a contract whether written or oral including
buying or selling, employment, tenancy and many more promises that is enforceable by the
laws is a contract. Set of promises to do certain things to achieve a fixed target enforced by
the legal conditions is an act of contract (O'brien, 2019).
Legal aspects of purchasing
Purchasing is the main aspect of the purchasing contract. A contract to deliver something in
exchange of some consideration is purchasing agreement. The purchasing manager is entitled
to perform purchasing functions (Erdmenger, 2017). A contract’s essential elements are
offer, acceptance, consideration, willingness to enter into a contract and capacity in the facts
of the contract law to create a contract (Stone & Devenney, 2017).
Offer
The very first step to make a contract is asking the party accept the proposal. In terms of a
contract, an offer is a kind of invitation. Everything including the whole process of contract
revolves around the offer. An offer made to a person to perform something in exchange of
some consideration, taking all legal term in consideration is a valid offer (Smits, 2017).
General Offer
An offer made to the whole public at large level is a general offer. These offers have no
specific parties. Any member found suitable to accept the conditions can accept the offer. For
3 | P a g e
Introduction
Contract simply means an acceptance of the agreement that is enforceable by law. Agreement
is the mixture of proposal and the approval. An offer is made and accepted by the other
becomes an agreement and this agreement becomes a contract when it is enforced by the law.
Hence an agreement is enforceable by law is a contract whether written or oral including
buying or selling, employment, tenancy and many more promises that is enforceable by the
laws is a contract. Set of promises to do certain things to achieve a fixed target enforced by
the legal conditions is an act of contract (O'brien, 2019).
Legal aspects of purchasing
Purchasing is the main aspect of the purchasing contract. A contract to deliver something in
exchange of some consideration is purchasing agreement. The purchasing manager is entitled
to perform purchasing functions (Erdmenger, 2017). A contract’s essential elements are
offer, acceptance, consideration, willingness to enter into a contract and capacity in the facts
of the contract law to create a contract (Stone & Devenney, 2017).
Offer
The very first step to make a contract is asking the party accept the proposal. In terms of a
contract, an offer is a kind of invitation. Everything including the whole process of contract
revolves around the offer. An offer made to a person to perform something in exchange of
some consideration, taking all legal term in consideration is a valid offer (Smits, 2017).
General Offer
An offer made to the whole public at large level is a general offer. These offers have no
specific parties. Any member found suitable to accept the conditions can accept the offer. For
3 | P a g e
Legal and Contractual Preparations in Purchasing
example crossword puzzle published in newspaper in exchange of reward is not published for
any specific person or party they are generally acceptable by all and anyone can solve that to
get the reward.
Specific Offer
A specific offer is just opposite of the general offer. This offer is titled to a particular person
or parties and only they are able to accept or reject the offer. They are specially made to
specific party hence they are called specific offer (Bayern, 2016).
Acceptance
Acceptance is the second phase to create a contract. Making an offer is not sufficient but the
acceptance is important to make an offer complete. Without acceptance an offer has no value
to make it valuable it must be accepted by the person to whom it is made. Acceptance must
be expressed with same consent. A mere silence is not an acceptance according to the law to
make a lawful contract (Falk et al., 2015).
Lawful consideration
Consideration is that thing for which an offer is made and accepted. It is something in return
in completion of the action in a contract. A consideration can be in form or reward, money
and many more but is should be lawful. Lawful consideration means the consideration that
are not forbidden by law and permitted by the contractual laws (Fandl, 2016).
Purpose to create legal relations
Both the parties, entering into a contract needs to be clear with their purpose to make the
legal relations. This simply means parties are not allowed to enter into an unlawful
agreement. Without legal intention no agreement can be treated as contract. Intention is must
in order to make a contract (Mik, 2017).
4 | P a g e
example crossword puzzle published in newspaper in exchange of reward is not published for
any specific person or party they are generally acceptable by all and anyone can solve that to
get the reward.
Specific Offer
A specific offer is just opposite of the general offer. This offer is titled to a particular person
or parties and only they are able to accept or reject the offer. They are specially made to
specific party hence they are called specific offer (Bayern, 2016).
Acceptance
Acceptance is the second phase to create a contract. Making an offer is not sufficient but the
acceptance is important to make an offer complete. Without acceptance an offer has no value
to make it valuable it must be accepted by the person to whom it is made. Acceptance must
be expressed with same consent. A mere silence is not an acceptance according to the law to
make a lawful contract (Falk et al., 2015).
Lawful consideration
Consideration is that thing for which an offer is made and accepted. It is something in return
in completion of the action in a contract. A consideration can be in form or reward, money
and many more but is should be lawful. Lawful consideration means the consideration that
are not forbidden by law and permitted by the contractual laws (Fandl, 2016).
Purpose to create legal relations
Both the parties, entering into a contract needs to be clear with their purpose to make the
legal relations. This simply means parties are not allowed to enter into an unlawful
agreement. Without legal intention no agreement can be treated as contract. Intention is must
in order to make a contract (Mik, 2017).
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Legal and Contractual Preparations in Purchasing
Capacity
Contract needs two parties but these two parties must be capable to enter into contract. A
person has some essentials conditions to make a contract these contractual capacities are
A person needs to attend age introduced in the contract act.
A person needs to be sound mind in nature sound mind person is able to understand
the legal terms and conditions to enter into contract.
A person stopped by the law to enter in a contract is not capable to accept an offer
(Besley, 2018).
Certainty of contracts
This is an important part of the contract that parties entering into a contract need to ensure
that the contract they are entering are certain and are enforceable by law. This is an initial
duty of the parties to check the contract is lawful and certain.
Negotiation and drafting principles of purchase contract
Negotiation is a mid-way to solve a conflict arises between the two parties on allocation of
scarce resources. This is a process of solving the potential dispute by mutual consent in form
of decision where both parties are free to put their views and have complete power to accept
or deny the solution (Koval, 2018). Negotiation in contract needs extra efforts and
understanding of the sales and purchase rules and regulations. Negotiations in contract
include a wide range of tangible and intangible desires (Crump, 2015).
BATNA (Best Alternative To a Negotiated Agreement)
In situation of disputes arose among negotiating between the seller and the buyer an
experienced buyer always keeps a backup plan in form of the BATNA to make the
5 | P a g e
Capacity
Contract needs two parties but these two parties must be capable to enter into contract. A
person has some essentials conditions to make a contract these contractual capacities are
A person needs to attend age introduced in the contract act.
A person needs to be sound mind in nature sound mind person is able to understand
the legal terms and conditions to enter into contract.
A person stopped by the law to enter in a contract is not capable to accept an offer
(Besley, 2018).
Certainty of contracts
This is an important part of the contract that parties entering into a contract need to ensure
that the contract they are entering are certain and are enforceable by law. This is an initial
duty of the parties to check the contract is lawful and certain.
Negotiation and drafting principles of purchase contract
Negotiation is a mid-way to solve a conflict arises between the two parties on allocation of
scarce resources. This is a process of solving the potential dispute by mutual consent in form
of decision where both parties are free to put their views and have complete power to accept
or deny the solution (Koval, 2018). Negotiation in contract needs extra efforts and
understanding of the sales and purchase rules and regulations. Negotiations in contract
include a wide range of tangible and intangible desires (Crump, 2015).
BATNA (Best Alternative To a Negotiated Agreement)
In situation of disputes arose among negotiating between the seller and the buyer an
experienced buyer always keeps a backup plan in form of the BATNA to make the
5 | P a g e
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