The Basics of Contract Formation Part 2
As we stated in Part 1 of our two-part series, sometimes the contract process can get a bit complicated. If your contract contains multiple documents or components that you don’t typically see in a standard contract, you’ll benefit from the assistance of a Brandon construction attorney. An attorney will be able to guide you throughout the formation of your contract.
In this article, we will discuss counteroffers and key contract terms to remember.
While in the process of accepting an offer, one of the parties may have objections to some of the terms in the contract, so they may opt to send a counteroffer.
Consider the following scenario:
A subcontractor receives an offer from a prime contractor. If the subcontractor doesn’t like some of the provisions within the offer, the subcontractor can strike through them, make desired changes, initial the document, and send it back to the prime contractor. If the prime contractor accepts the subcontractor’s new terms, the prime contractor will then sign and send the document back to the subcontractor.
The counteroffer voids the original offer and no official contract is formed until the terms are officially accepted by both parties.
Key Terms to Remember
The following key terms are vital to a construction contract:
- Price: what each party will pay in return for something
- Quantity: how much of something will be provided
- Quality: what type of material will be provided for the project or what will be built
- Duration: how long the project will take
How to Keep Track of Your Contract
Throughout the negotiation phase, it is common to have multiple versions of a contract. For example, you may have six different versions based on the changing of terms. To determine which contract is the operative document keep all fax confirmation pages or cover emails to keep track of which document came first so you will know which document services as the official binding agreement.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or s