Asi, Jenny A.

CEM124 / E01

1. In your own words, discuss the meaning of contract.

A contract is an agreement between parties. It binds both parties to fulfill their obligations
in consideration of their rights legally. It practically explains and discussed the terms and
conditions to ensure that both side of the parties would benefit from the enforced contract.
After negotiating the terms that both parties accepted a contract is created and signed to form
a legal contract. The concept of contract is about the negotiation of the parties who agreed on
the terms and conditions that they discussed. The original aim of interpretation of contract to
present a clear intention of the agreement. It also helps both parties to avoid any unnecessary
loss financially. A contract should have a simple and direct meaning as not give another
interpretation that can conflict. It is practically a promised by both parties that is legally written
that the law will hold as to not break the promised agreement. A contract is to fulfill the same
objective of the parties. An agreement between parties is difficult especially if you are not
closely familiar with the other party. The court will interpret the contract on what is literally
written in the document. It is a document that ensures that their words are put into actions.
The contract also includes rules set by both parties as to not create any problems that the
parties want to avoid. An outstanding result in their performance of work can be demonstrated
due to mutual understanding of the contract. A contract is important it is a statement that both
have come in to terms on what they’ve discussed and is put in to action. In business, a contract
is what holds both parties to not betray their words. There is a protocol which you need to
follow to have an organized performance of work. Having a contract ensures the parties that
they are fairly responsible on what is written in the contract.

2. Give two (2) problems of the classic law of contract and discuss their effects.

One of the problems of the classic law of contract is the agreement between parties. Under
this problem only the parties who are held responsible for the contract. Meaning subcontracts
and engineers are not liable. It ensures the parties that they are responsible on what is written
in the contract. They share the same commitment in their work thus making a great progress in
their work. A contract is important it is a statement that both have come in to terms on what
they’ve discussed and is put in to action. In business, a contract is what holds both parties to
not betray their words. It was said that there only few cases where subcontractors are involved
in liability of work. The contract also includes rules set by both parties as to not create any
problems that the parties want to avoid. It caused uncertain patterns that can cause negligence
in the system of work. After negotiating the terms that both parties accepted a contract is
created and signed to form a legal contract. It establishes the objectives of both parties to fulfill
their performance of work. An agreement between parties is difficult especially if you are not
closely familiar with the other party. This also one of the reasons why a contract is need.

Another problem is interpretation. It is how the court take literal consideration on what is
written in the contract. There are cases where over worded of language is used to twist the
meaning of contract and is not noticeable which can be interpreted differently. This is an
important part where you need a trusted professional to properly interpret on what is written
in the contract before signing it. Interpretation of contracts should emphasize the fairness of
the terms and conditions that will be applied. The original aim of interpretation of contract to
present a clear intention of the agreement. It is especially needed when dispute arises between
parties because the contract is the basis for the judgement on one’s action. Therefore, statute
is also included in the contract. Word for word the court will interpret the contract on what is
literally written in the document. The contract also includes rules set by both parties as to not
create any problems that the parties want to avoid. Specifications of the contract must be
clearly stated as to not cause any misunderstanding. The court would interpret it in simple
terms as to not create confusion and difficulty in contract.

3. What is a statute and why is it important to be included in a contract?

Statute basically means rules intended to avoid misconduct. The parties who signed the
contract are obligated to follow the policies declared in the said contract otherwise legislative
authorities will act accordingly. Statute is important to avoid any illegality and deals with
solutions such as breach of contract. It also helps both parties to avoid any unnecessary loss
and disputes that can occur between parties. Statutes must be based on the fundamental law
of the contract. Statute is created to organize what the parties come in to terms. Statute is also
considered as law. It is a protocol which you need to follow to have an organized performance
of work. It ensures the safety of the parties that is why the court enforces the statute of law.
This is important as to have basis on the preferred way of dealing things agreed by the parties
in consideration to the law of contracts. There are many kinds of statute but generally it is what
hold the contract in order with the arrangement of the terms and conditions of the parties.

4. Is partnering important in a contract? Why?

Yes, it is important because a partnership contract can avoid difficult procedures. It

establishes the objectives of both parties to fulfill their performance of work. It also helps both
parties to avoid any unnecessary loss financially. Meaning it would avoid conflict between
major players of the contract. The contract when partners doesn’t bear the heavy legal law of
contract. Their contract is friendlier due to their trust in cooperating for their work. A contract
between partners is more trusted than a formal contract agreement. This is due to
familiarization on both side of the parties. It establishes relationship to have teamwork
agreeing in mutual objective. An outstanding result in their performance of work can be
demonstrated due to mutual understanding of the contract. This is usually made through
communication that both parties are connected. It also helps both parties to avoid any
unnecessary loss and disputes that can occur between parties. The contract also includes rules
set by both parties as to not create any problems that the parties want to avoid. After
negotiating the terms that both parties accepted a contract is created and signed to form a
legal contract. The original aim of interpretation of contract to present a clear intention of the
agreement. Sometimes partnership is created through personal relationship for mutual
understanding of their work. This helps them boost their power in terms of their performance
of work which is beneficial to their business. They share the same commitment in their work
thus making a great progress in their work. To simply put partnering is important in a contract
because they understand what is on the line which is why the contract between them is not
strict as the usual formal contract.

A contract is an agreement between parties. It binds both parties to fulfill their obligations
in consideration of their rights legally. It practically explains and discussed the terms and
conditions to ensure that both side of the parties would benefit from the enforced contract.
After negotiating the terms that both parties accepted a contract is created and signed to form
a legal contract. The concept of contract is about the negotiation of the parties who agreed on
the terms and conditions that they discussed. It also helps both parties to avoid any
unnecessary loss financially. A contract should have a simple and direct meaning as not give
another interpretation that can conflict. It is practically a promised by both parties that is legally
written that the law will hold as to not break the promised agreement. A contract is to fulfill the
same objective of the parties. The court will interpret the contract on what is literally written in
the document. It is a document that ensures that their words are put into actions. The contract
also includes rules set by both parties as to not create any problems that the parties want to
avoid. An outstanding result in their performance of work can be demonstrated due to mutual
understanding of the contract. A contract is important it is a statement that both have come in
to terms on what they’ve discussed and is put in to action. In business, a contract is what holds
both parties to not betray their words. Having a contract, ensures the parties that they are
fairly responsible on what is written in the contract.