February 23, 2017 | Construction | By admin | 0 Comments

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Conclusion of a contract Agreement of a contract between the parties may be reached after prolonged negotiations, which will have started with the original enquiry followed by the tendered offer. There may be an exchange of letters and/or notes of meetings which may be held to be counter-offers or just a record of agreement as to certain terms. The Contract 19 outcome may be recorded either by an acceptance letter or by a formal agreement signed by both parties. A subcontract may be concluded by an oral agreement without either the offer or acceptance being in writing.

Such a condition might be effective in avoiding contractual arrangements being created where no subcontract exists. However, it is suggested that once a subcontract is in existence, whether formed by conduct or any other informal procedure, it can only be amended by agreement. Once a subcontractor commences work following instructions, there will be a general presumption that it will have a right to be paid for the goods and services provided. Acceptance by conduct of the terms and conditions in a counter-offer can apply in situations other than by the subcontractor starting work, such as by the contractor admitting the subcontractor to site.

The intention of such arrangements is to recompense the subcontractor if it does not carry out the anticipated subcontract work because either the work does not proceed or at an early stage the parties decide they cannot reach agreement on a satisfactory way forward. However, should the parties fail to conclude an agreement but work proceeds to completion, then the subcontractor will probably not be limited to his proven costs, with no profit etc. This was the main thrust in the case of Monk Construction v.

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