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Effects

A contract is an agreement between two parties. Contract law is the main area which building contracts are administered. The legal aspect of a building contract is contained in written conditions either of a general or special nature. The two parties agree to work within the conditions set down and are obliged to adhere to them or suffer penalties which are either stated within the contract or which are implied by the nature of the contract. Contracts of this nature are legally binding on both parties and a judgment given against either party carries the force of the law under which the contract is enacted. (McLangan, 1991). The law of contract will applies only when either one the of party has breached the contract or do something which is not according to the contract's requirement for example: where the principal fails or refuses to pay for work certified for payment or where the contractor does not proceed with work with due diligence or in accordance with the agreed time and......


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Approximate Word Count: 994
Approximate Pages: 4 (250 words per double-spaced page)

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