Scope of a Contract: Everything You Need to Know
The scope of a contract is part of a formal document that specifies all the criteria involved between two parties.3 min read
The scope of a contract is part of a formal document that specifies all the criteria involved between two parties.
The Scope of the Law of a Contract
There are numerous aspects of commercial law, and sometimes it's difficult to define all areas. Typically, commercial law practice involves human research as it pertains to, but not limited to, contracts, the sale of goods, taxation, insurance, and hiring. The scope of the contract defines all aspects of the document.
Contracts have different forms, and the amount of money involved ranges from small to large sums. Some contracts last for years while others have a short timeframe. The content found in the contracts also varies depending upon their purpose. In addition, some are discrete while others affect many people. Contracts also have specializations.
- Membership to a club
- Domestic or marriage contracts
- Unperformed contracts
- Executed fully performed contracts
Offer and Acceptance
A contract involves a relationship between parties, and there is a promise made together in creating a legal relationship. The tentative promise, or offer, is the second part of a binding contract. The offer cannot bind the parties together until both sides agree.
The second phase is communicating the offer. This action typically occurs before the offer's acceptance and again, both parties must agree to the specifications. Communication can occur via letter, fax, and email. Accepting the new agreement occurs before making an offer. From there, both parties sign the contract. This is the final aspect of an offer, called the acceptance.
As a type of agreement, a contract is a signed document uniting two or more people. These individuals must fulfill obligations or promises to each other. Each party can create its own duties, and this falls under the law of performances. There are specific elements of a contract, which include the following:
- Communication of offer
- Intention to create legal relations
- Principle considerations
- Certainty of terms
- Offer acceptance
There are also specific types of contracts.
- Bilateral contract. Each party must oblige to the other party's promise.
- Unilateral contract. Only one party must give something to the other party, traditionally in exchange for an act.
Developing the Scope of the Contract
The identification phase provides a basic scope of the contract. It describes the elements the public needs that the private partner will deliver. In some projects, it's difficult to define the contract's scope. Some projects have different development and management affiliations that lie under different scopes of a contract. This means that the obligations or services go toward other parties.
For instance, a project involving a hospital might include a condition on clinical services. If the hospital transfers the clinical service to a private partner, the hospital must decide to include other services, such as cleaning and catering, in addition to its maintenance services. The hospital must also determine what services to include in the contract's boundaries.
How to Write a Scope of Services Agreement
If you operate a small business, you may need to obtain services from other companies, contractors, or professionals. You can obtain a scope of services or scope of work agreement to specify the services you wish to receive.
This document describes and defines the service or tasks details. It also includes conditions for payment and settlements pertaining to disputes. It's a foundation for a services contract. When writing a scope of services agreement there are several items to consider.
- Offer. The agreement is a contract between your company and service provider. Include your firm's name, the person performing the work, and both addresses. Although you don't need to include payment terms and amount, you can state the conditions that affect payments.
- Term. Every agreement should include a fixed duration. Include a starting and ending date. You can also include dates or payment increments where you and the other party discuss to extend or terminate the agreement.
- Work products. The agreement must include each product your company expects to get from the other party. The products include proposal responses and must include the delivery format, such as hard copy or email.
- Ownership. Include a clause that states your business has sole rights to the use, trademark, and publication of the products or works created. You can also add a nondisclosure clause preventing the provider from misusing company information.
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