Evocurement

An invitation to treat is a preliminary step towards making an offer, but it does not lead to the formation of a contract. It is a way of expressing interest or willingness to negotiate, without committing to any specific terms. Judges often have to decide whether a statement or an action is an offer or an invitation to treat, as the distinction can affect the legal rights and obligations of the parties involved. According to the study guide, some examples…

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Costs and price are often the most hotly debated area when the buyer and supplier negotiate with each other. Drafting suitable pricing appendix will prompt supplier to focus more on cost management rather than charging the buyer unnecessary expense. In this series, we examine different pricing arrangements, when you should apply it and how to manage supplier’s performance with these arrangement. Schedule of rate Schedule of rate is a schedule in which unit price of each item is listed. The…

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Construction procurement is particularly complex and risky. Forming a contract in construction may take lots of time and energy of both client and contractor. Therefore, standardisation in construction contract would help the buying organisation to save their precious resources. Furthermore, the wording of these model form contracts is accurate as it has been agreed among the professionals within an industry. However, becoming too reliant on model form contract also contains inherent risks. The organisation may not fully understand the implications…

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Business entities often have their own standard terms and conditions at hand. These terms are often drafted carefully by legal professionals with the purpose of protecting the rights of issuer. However, over-protection of one party’s benefits may come at the expense of the other. For example, a procurement manager told me that the legal manager in her company embedded a limit of liabilities into the standard terms. In this clause, the company shall only pay the supplier up to 50%…

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For much of human history, the enactment of law is the monopoly power of states. This practice preserves the sovereignty of a country, but it erects a great barrier to international trade since the legislation in each country is different which substantially raises the costs of doing business overseas. The boom of international trade in the late 20th century had prompted countries and international organisations to unify international trade laws. The United Nations Convention on Contracts for the International Sale…

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For much of human history, the enactment of law is the monopoly power of states. This practice preserves the sovereignty of a country, but it erects a great barrier to international trade since the legislation in each country is different which substantially raises the costs of doing business overseas. The boom of international trade in the late 20th century had prompted countries and international organisations to unify international trade laws. The United Nations Convention on Contracts for the International Sale…

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If you have joint any procurement training, probably you would hear that the specification is one of the most important documents in procurement and supply. This proclamation may sound straight forward to you, but some people may argue that other documents are even more crucial to procurement processes. In fact, in contractual law, the specification plays a fundamental role because the most essential obligations arise from it. This blog post will clarify the relation between the specification and an implied…

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