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Your Guide to Understanding Contract Management Software

Your Guide to Understanding Contract Management Software

What is Contract Management?
Contract management, is the management of contracts that are created between customers, partners, vendors or employees. The field of contract management includes negotiating the terms and conditions present in these contractual agreements, while subsequently ensuring that stipulations within the contract adhere to compliance issues designated by the underlying company or industry.
In addition, contract management entails the documenting and agreeing on all changes that may come to light during the implementation and execution of such contractual agreements. 
Contract management can be best summarized as the formal process of efficiently managing the creation of a contract, along with expediting the execution and required analysis of the contract. The systematic approach of contract management is required to maximize the financial and operational capabilities and performance of the underlying parties. In addition, contract management is undertaken to mitigate the risk associated with a contractual agreement.
Contract management deals with contractual agreements that are made in a commercial setting; common forms of commercial contracts will include employment letters, purchase orders, sales invoices and utility contracts.
The more complicated forms of commercial contracts will include contractual agreements regarding constructions projects, the exchange of goods or services that are regulated by a government authority or require the delivery of technical specifications, intellectual property agreements and issues revolving around international trade. 

Contract Management Software:
The majority of large corporations in the United States, actively manage and maintain nearly 50,000 contracts at any given time. The majority of these contracts, are managed in a tradition or manual sense; however, approximately one quarter of such companies have recently implemented a form of contract management software to expedite the management of such contracts. 
Contract management software is an automate program to help streamline the creation and negotiation of a business contract; contract management software achieves such functions through compliance and renewal and through exhaustive monitoring of the underlying contracts. Contract management software requires the programs to maintain a corporate contract, to improve a respect company’s access and visibility in regards to the control of contracts. 
The majority of contract management software will also enable the corporation to create and observe warehouse standard contracts and business terms and conditions for such contracts through various templates. Other forms of business contract management software will utilize a Service Lifecycle management program, which will bundle contract management with all other forms of management in relation to service-based operations. 
This function enables the contract management software to improve the company’s customer retention; through these various functions, the average piece of contract management software will allow companies to better achieve savings during procurement negotiations and procurement spending. In addition, contract management software, will enable the using corporation to improve sales effectiveness and increase compliance by allowing contracts to ultimately drive day-to-day operations. 

Contract Law Defined

Contract Law Defined

Contract law is defined as the body of law that governs oral and written contracts.  Included in contract law are topics on the nature of contracts, limitation of actions, breach of contract, termination of contract, and many more.  Put simply, contract law deals with the legal issues surrounding the formation, duration, breaching, or termination of contracts.  
For example, the Uniform Commercial Code is used in contract law to harmonize the law of sales and commercial interactions in the United States.  This Code is used in almost every state and is considered the standard in most states regarding laws on the sale of goods.  The Uniform Commercial Code is a long-standing act in contract law, a collaboration between the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute.


Breach of Contract
One of the most prevalent subjects in contract law is the idea of a breach of contract. A breach of contract is a legal concept characterized by one or more parties failing to honor the provisions stated in a contract.  For example, if an employee signs a non-compete agreement with an employer and begins his or her own company after being fired, he or she can be sued for breaching the contract.  Breaches of contract come in four main types:

Minor Breach
A minor breach of contract, also referred to as an immaterial breach, occurs when the non-breaching company is entitled only to compensatory damages.  

Material Breach
Unlike a minor breach, a material breach allows the non-breaching party to collect damages and a court-obligated performance of conditions stated in the contract.

Fundamental Breach
A fundamental breach, also referred to as an anticipatory repudiation, is a breach of contract so tangible that it may allow the non-breaching party to terminate the contract.  The party is then entitled to also sue for damages.


Anticipatory Breach
An anticipatory breach, also known as anticipatory repudiation, is when one party indicates that it will be unable to perform as the contract states, or that future non-performance is unavoidable.  In this case, the anticipatory breach may be treated as an actual breach and the non-breaching party can then sue for damages.
Avoiding a breach of contract is important for many different reasons.  For example, breaching a contract can lead to legal fees, a damaged business reputation, and damages.  These damages may include:

Compensatory damages
Compensatory damages are damages used to compensate for losses in order to bring the non-breaching party back to the position before the breach.


Nominal damages

Nominal damages are awarded when a breach occurs with no measureable financial loss.

Punitive damages
Punitive damages are made to the non-breaching party whose payment can extend beyond the financial losses of the breach.  They are meant to punish “wrongful acts” and are not specially aimed to remedy breaches of contract law.

Liquidated damages
Liquidated damages are identified by parties in the contract itself.
In addition to damages, a breach of contract may also bring specific performance or cancellation and restitution.  In specific performance, the court orders that the breaching party perform duties written into the contract.  In cancellation and restitution, the non-breaching party receives damages and is entitled to cancel the contract, voiding its terms.

Enforcing a Contract

To collect these remedies for breaches of contract, parties usually turn to small claims court.  However, going to small claims court can cost a significant amount of time and money in court appearances and court fees.  Many times, the parties will choose to go in another direction.  In these cases, a dispute may be brought to mediation or arbitration. 

Lawsuit
In most cases, the non-breaching party will sue for damages in small claims court.  A lawsuit can result in a number of remedies for the breached contract, including damages, specific performance, and cancellation and restitution.  A lawsuit can provide damages that will provide the non-breaching company with remedy for the breached contract, especially if it is measurable by the court.

Mediation
Mediation involves both parties working with a mediator to find ways to resolve the contract dispute.  A mediator is responsible for finding a solution that works for both parties.  Mediation allows the parties to minimize risk and control costs.  

Arbitration
Arbitration is similar to mediation in that there is a third party reviewing the dispute.  However, since arbitration is mandatory and legally binding (most of the time), many people will choose to undergo mediation instead of arbitration.

Quick Blurb on Contract Laws

Quick Blurb on Contract Laws

Contract law is the legal
specialty that addresses the creation and execution of contracts. The rules and
regulations established in contract law indicate that a contract is a legally
binding document. Therefore, once a contract is signed by all participating
parties, these individuals are legally obligated to adhere to the conditions
outlined in the contract.

Following the authorization of
the contract, a participating party cannot choose to alter the contract. The
terms and conditions of the contract can only be altered or modified if all
parties agree to the changes. In the event that this occurs, a new contract
will need to be created. 

The new contract will detail any modifications made to
the original contract. However, if one participating party opposed the alteration
of the original contract, then the contract cannot be modified. The party who
wanted to alter the contract conditions will be required to adhere to the terms
of the original contract.

 

All You Need to Know About Sustainable Construction

All You Need to Know About Sustainable Construction

What is Sustainable Construction?

Sustainable construction refers to the process of constructing a structure that is environmentally sound and resource-efficient throughout the building’s life. Sustainable construction incorporates a recyclable aspect throughout the entirety of the building’s lifecycle, meaning the project will be deemed efficient (in terms of resources used and the impact it poses on the environment) from design to construction and subsequent operation, maintenance, renovation and finally its demolition.
The introduction of innovations and new technologies have enables the construction of new buildings to meet environmental and resource standards. These new technologies, which are consistently being developed, complement current construction efforts to create greener structures. The common objective of sustainable construction is to reduce the overall impact and coordinating negative externalities that a construction project poses on human health and the natural environment. 
How does Sustainable Construction work?

To accomplish the aforementioned goals, a sustainable construction project will efficiently use its available resources and combine this practice with recyclable or innovative technologies. A sustainable construction project will efficiently use energy, water and other natural resources to build the structure. In addition, a sustainable construction project will protect occupant health and improve employee productivity through the issuance of a highly-regulated and organized protocol. Lastly, a sustainable construction project will reduce by products, through the reduction of waste, pollution and environmental degradation. 
Sustainable Construction and Energy Efficiency:

A green building will typically utilize energy in a highly efficient manner. To increase the efficiency of energy, the construction team may use high-efficiency windows and innovative insulation systems in the structure’s walls, floors and ceilings. 
A sustainable construction project may also incorporate other innovative technologies, such as a passive solar building design. This strategy will implement orient windows and walls to shade the structure during the summer while maximizing light in the winter months. 
A sustainable construction project will also implement renewable energy sources throughout the construction process. Solar power, hydro power, wind power or biomass can all reduce the environmental impact of the building. 
Sustainable Construction and Water Efficiency:
Protecting water quality and reducing water consumption are fundamental objectives during the sustainable construction process. The conservation and protection of water throughout a building’s life cycle may be accomplished by designing dual plumbing systems. These systems will efficiently recycle water when a toilet flushes. In addition, water may be conserved during the lifecycle, by installing low-flush toilets or low-flow shower heads. 
Point of use water treatment and heating systems also improve both the water quality and the efficiency of energy by reducing the amount of total water in circulation. 
Sustainable Construction and Waste Reduction:

A sustainable construction project will seek to reduce waste or byproducts; the materials and water used during the construction of a sustainable structure will be preserved as much as possible. During the building phase, a sustainable construction project will limit the amount of material that is transferred to land-fills. An efficiently-designed building will also help reduce the amount of waste generated by the occupants by providing various on-site solutions, such as compost bins. 

Contract In Depth

Contract In Depth

A contract is a legal document which may be enforceable by legal action or by binding arbitration. In order for this to be true, however, the contract agreement must meet several important requirements. 
There must be a compensatory remedy for the contract under which the party which defaults is required to pay monetary compensation that would have otherwise been provided had the contract agreement been upheld, or an equitable remedy, which can also be called Specific Performance. The equitable remedy, or specific performance, compels an individual who enters into a contract agreement to carry out the action against which they have attempted to renege on their obligation. 
In order for a contract to be valid, the contract must involve unqualified, or “mirror”, acceptance. In order for a contract agreement to be valid, all parties must have the capacity to contract, and the terms of the contract cannot be trifling, indeterminate, or impossible. In the eyes of the law, a contract cannot be entered into to compel illegal action.
Although a contract is usually written in order to compel action, a contract agreement can also be created which will prevent a person from performing an act which they have the legal capacity to perform.
If a contract agreement is breached, legal remedies may be provided to address that breach.
Contract law, the legal field that specializes in the legal disposition of contracts and contract agreements, generally adheres to the Latin motto “pacta sunt servana,” meaning “pacts [agreements] must be kept.”

Promissory Estoppel Overview

Promissory Estoppel Overview

What is Promissory Estoppel?
In a general sense, Promissory Estoppel is a legal doctrine used in American law, which allows a party to recover on a promise, even if the promise was made without a formal consideration. In essence, a Promissory Estoppel prevents an individual from arguing that an underlying promise offered should not be upheld.
In addition, a Promissory Estoppel requires that a reliance on the promise was deemed reasonable and that the individual attempting to enforce the promise actually relied on the promise to his or her detriment. As is common with numerous forms of legality issues, the precise legal requirements needed to enact Promissory Estoppel may vary between jurisdictions within the United States.
A common example of Promissory Estoppel is where an employer offers an oral promise to pay an employee a monthly amount for the remainder of the individual’s retirement. If the employee relies on the promise and subsequently retires, the employer will likely be estopped, based on the principle of a promissory estoppel, from reneging on this promise to offer the monthly retirement payment.
Laws surrounding a Promissory Estoppel:
In a typical case of a promise or a contract, the law requires that a party receive consideration for the agreement. Consideration refers to a valuable asset that is exchanged between the two parties and the time of the agreement or the promise was made. Consideration can take the form of an asset, the exchange of monies, or the promise to refrain from doing something. Regardless of the form of consideration required in a contract, a consideration is needed in order to make an agreement or promise legally enforceable.
That being said, because the court system aims to achieve fairness, a legal forum will apply the doctrine of promissory estoppel in situations where a consideration is made. Even if an enforceable contract is not generated, the law may enforce the promise if a reasonable reliance and detriment are proven.
Differences between the Promissory Estoppel Doctrine and the Doctrine of Estoppel:
A promissory estoppel relies on a promise, while the doctrine of estoppel relies on a statement of fact. As a result of this foundational difference, the two doctrines complicate contractual agreements or the statement of a promise. Even if an agreement is not based on a formal consideration and even if promissory estoppel is not enforceable, because the situation did not include a promise, a court system can still enforce the “agreement” as a means to promote fairness.
This somewhat loose interpretation of promissory estoppel enables the court to impose obligations on the parties through the delivery of a quasi-contract—a doctrine that implied in law.

Privity of Contract Explained

Privity of Contract Explained

Privity of contract is a legal
doctrine that holds that a business contract, along with any other type of
contract, may not confer rights or impose obligations to any person or agent
except for the specific parties that have formed the contract.

Privity of contract is most
commonly an issue which arises during business contracts that have been formed
to allow for the sale of goods or services. Horizontal privity of contract
becomes an issue when the benefits bestowed by a contract are given to a third
party or a party that was not a part of the original contract. Vertical privity
of contract involves an independent contract that develops between one signer
of the original contract and another individual or other legal entity.

There are certain circumstances
under which privity of contract may be set aside which will allow the legal
entity who is not directly a part of the business contract to be allowed to sue
to force a party to the original contract to uphold their obligations. Privity
of contract will only allow a third party to the contract to go against one of
the original parties to the contract beyond the ability to collect the third
party’s entitlement to a benefit under the contract.

What Are Contracts

What Are Contracts

What is a contract?
 
 
A contract agreement is a legally binding agreement that is reached between two parties under which the two parties to the contract agree to assume an obligation to each other and provide methods of remediation through the courts in the event there is a dispute about whether or not each party upheld their obligation. 
 
 
Contracts law cases 
 
 
Contracts law is one of the major sections of common law. Some of the most prominent contract law cases have been developed over the past several hundred years. The most prominent and influential of these contract law cases have been compiled to create the Restatement of Contracts.
 
 
Meeting of the minds
 
 
A meeting of the minds is one of the essential elements of forming a valid contract. Meeting of the minds means that both parties to the contract have agreed to the terms of the contract. It can be difficult for the courts to determine if a meeting of the minds has been conclusively established. 
 
 
Deed poll
 
 
A deed poll is a legal document that binds a single party to take an action. It is different from a contract in that while a contract expresses a promise, a deed poll only expresses an intention to act. A deed of poll is commonly used in England, Wales, the Republic of Ireland, Northern Ireland, Hong Kong, and Singapore. 
 
 
Contract templates
 
 
Contract templates can be used to form a general contract. A contract template may also be used to ensure that the terms of the contract are equitable to all parties involved. 
 
 
Offer and acceptance
 
 
The underlying concept behind contract law is pacta sunt servanda. Pacta sunt servanda is a Latin phrase which is translated as agreements are to be kept. However, this only applies to legally valid contracts. One of the main methods of determining when a contract is valid is by determining if offer and acceptance has taken place. In the eyes of the law, the offer and acceptance is only valid if there is not a change to the offer and acceptance is unequivocal. 
 
 
Consideration 
 
 
Consideration is the item of value that is exchanged in a contract. Contract law is not concerned about whether or not the consideration being exchanged is of equal value. All that matters is that the consideration cannot be inconsequential.
 
 
Contract termination
 
 
A contract termination letter template can be an important resource for a company since it can help to make sure that the contract termination letter is legally valid and does not violate any laws when the contract termination letter is served. The contract termination letter should provide the reason the contract is being terminated, as well as the legal justification for the contract termination. 
 
 
Boilerplate contract
 
 
A boilerplate contract, adhesion contract, or standard form contract are all synonymous terms for a contract in which the terms of the contract are drafted ahead of time. Part of the controversy behind a boilerplate contract or adhesion contract is that it may not be possible to access the terms of the contract before signing the contract, since it may be on a “take it or leave it” basis. 
 
 
Sample contracts 
 
 
Sample contract forms can help individuals form a boilerplate contract, although standard contracts may also be formed from contract forms for the sale of goods, to create employment contracts, or to create a standard contract that can be used with minimal customization and involvement of lawyers.
 
 
Uniform Commercial Code 
 
 
The Uniform Commercial Code, abbreviated as the UCC, is a legal document that is meant to serve as a guideline for states to align with their contract laws in order to facilitate commerce. In one form or another the Uniform Commercial Code has been adopted in all fifty states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. However, Louisiana has not adopted Article 2 of the UCC. 
 
 
Contract software
 
 
Contract software to create free contract templates can be found widely online. These free contract templates can be used for personal or commercial business. Contract software can be distinct products or may be add-ons to existing software. 
 
 
Contract vs. agreement
 
 
While a contract forms a binding relationship between two parties, an agreement involves a relationship that cannot be enforced by the courts. Contracts outline the obligations that are being assumed, although contracts outline the remedies if these obligations are not met. 
 
 
Restatement of Contracts
 
 
The Restatement of Contracts is a widely respected legal treatise. The Restatement of Contracts is compiled by the American Law Institute. 
 
 
Privity of contract 
 
 
Privity of contract is the concept that only the two parties that form business contracts can sue to collect benefits from the violation of a contract.
 

Using A Contract Termination Letter

Using A Contract Termination Letter

A contract termination letter template may be used by a company in order to ensure that they terminate any contract in which they are currently in a method that will completely avoid further complications which can cause further disputes.
A contract termination letter template can be created to create an employment contract termination letter, a business contract termination letter, or a construction contract termination letter. These three contract termination letter types are the most common, which means that one of these three contract termination letter templates is most likely to be encountered or needed.
The essential elements to include in a contract termination letter are the names and specifications that can be used to identify the party to the contract who is receiving the contract termination letter. The contract termination letter should contain an opportunity to refer to the terms and conditions that were present in the original contract that empowers the party to terminate the contract.
If the contract termination letter involves a contract that requires the party breaking to contract to provide monetary compensation for breaking the contract, it is essential that the contract termination letter mentions how the payment will be provided.
A contract termination letter must include the code under which the individual gains the authorization to terminate the contract. This restriction primarily applies to a contract termination letter provided by a company to an employee. 
A contract termination letter should be completely professional.

What You Didn’t Know About Contract Management

What You Didn't Know About Contract Management

What is Contract Management? 
Contract management, also referred to as contract administration, is the management of contracts that are created between customers, partners, vendors or employees. The field of contract management includes negotiating the terms and conditions present in these contractual agreements, while subsequently ensuring that these stipulations adhere to compliance issues designated by the underlying company or industry. 
In addition, contract management entails the documenting and agreeing on all changes that may come to light during the implementation and execution of such contractual agreements. 
Contract management can be best summarized as the formal process of efficiently managing the creation of a contract, along with expediting the execution and required analysis of the contract. The systematic approach of contract management is required to maximize the financial and operational capabilities and performance of the underlying parties. In addition, contract management is undertaken to mitigate the risk associated with a contractual agreement.
Contract management deals with contractual agreements that are made in a commercial setting; common forms of commercial contracts will include employment letters, purchase orders, sales invoices and utility contracts. The more complicated forms of commercial contracts will include contractual agreements regarding constructions projects, the exchange of goods or services that are regulated by a government authority or require the delivery of technical specifications, intellectual property agreements and issues revolving around international trade. 


Common Areas of Contract Management:
Contract management, in the most simplistic of forms, will expedite the drawing and execution of a business contract. A business-standard contract model, as carried-out by numerous organizations throughout the United States of America will typically review and systematically inspect the following areas of business disciplines:
Baseline management
Commitment management
Authoring and negotiating the business contract
Creating a visible contract that is easily understood by both parties
Growth Contracts for sales-side contractual obligations
A contract management team will expedite the creation and delivery of numerous types of contracts, including purchasing contracts, partnership agreements, trade agreements, intellectual property agreements and sales contracts. 
A purchasing contract is a legally-binding agreement between a company (the buying party) and a supplier who promises to sell products and/or services that meet the terms and conditions within the contract. The company, in return, is obligated to acknowledge the transfer of goods and services and to pay the seller for the offering.
A sales contract is a legally-binding agreement between a company (the seller) and a customer; in this contractual agreement, the company agrees to sell products or services to the customer. In return, the customer is obligated to pay for the products or services purchased.
A partnership agreement may take the form of a contract which formally establishes the terms of a partnership formation between two legal entities. A partnership agreement, in regards to contract management, may also merely reflect the desire of the parties to act is if both are forming a partnership with common goals.  
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