I.

PERSONAL REACTION
Learning the basics of a contract is an important part for a civil
engineering student like me. The first group has reported about
Contracts, its characteristics and element. Also, they discussed
what is an obligation and things related to this. In my opinion, the
group has reported the issues well and dispersed enough
information. Furthermore, I can say that through their report gave
enough knowledge that I may use in the future.

II.

SIGNIFICANCE OF THE STUDY

A contract is a form of communication. It is as fundamental to
beginning a work for the professional artist as is a canvas or
armature. The business environment is full of agreements between
businesses and individuals. While oral agreements can be used,
most businesses use formal written contracts when engaging in
operations. Written contracts provide individuals and businesses
with a legal document stating the expectations of both parties and
how negative situations will be resolved. Contracts also are legally
enforceable in a court of law. Contracts often represent a tool that
companies use to safeguard their resources. Without a contract and
a written warranty, there is little you can do about poor quality or
incomplete work.

III.

STATEMENT OF THE PROBLEM

IV.

What is a contract?
What are the different elements and characteristics of a
contract?
How can contract help protect you from potential problems
such as loss of deposit or overcharging?

OBJECTIVES

V.

To know what is a contract and how important it is.

To determine the elements and characteristics that makes up
a contract.
To engage in issues on the different problems in business
regarding contracts and how to minimize the risk of being
involved in one.
TIME CONTEXT
Tuesday, November 18, 2014

VI.

CONTRACT

VIEWPOINT
A contract is a negotiation between two parties. Always. An
agreement exists when two or more parties agree on fundamental
terms, with the intention of entering a legally binding contract. The
contract must state who is agreeing to the terms of the contract.
This includes the names of the people involved, as well as the
business names if applicable. The contract must be signed and
dated by the parties involved. An offer is made from one party, the
seller to another, the buyer and the second party has the option
of accepting the offer or declining. The seller makes the offer with
the intention of creating a binding contract upon acceptance by the
buyer. A contract will be legally enforced with the help of a lawyer
who will ensure the fairness to both parties.

VII.

COURSES OF ACTION

VIII.

The single most common reason that there are problems with
contracts is that the parties do not understand exactly what is
expected of them.
There is a false sense of security when using standard
contracts such as AIA, that both parties will be fairly treated.
In fact, all contracts are slanted to favor one of the parties,
usually the one that created the contract.
Many lenders, owners and contractors use form contracts with
insurance and indemnity requirements that are outdated,
unenforceable or otherwise unobtainable. Forcing a party to
obtain insurance in a form that is no longer offered, or offered
only at a cost-prohibitive premium, is not in the projects best
interest.
ALTERNATIVE COURSES OF CONSIDERATION

IX.

All the terms and conditions should be crystal clear at any

point in time. And should amendments be made, there should
be an agreement with the consent of both the parties.
It is especially important to have a contract that was drafted
for a specific project by an experienced construction attorney
It is crucial to have an experienced attorney review the
contracts.

ACTION PLAN

TIME FRAME

1 day

1 day
X.

ACTIVITIES
Negotiation of the two
parties. Matters
involving the project
Seminar: encourage
consciousness about
breach of contract

CONDUCTED BY:

Lawyers

DTI, NGO, Lawyers

RECOMMENDATION
It is worthwhile to consult with an attorney in preparing
agreements, particularly where the artist is not experienced in
writing or negotiating agreements, or is simply new to the
business.

XI.

CONCLUSION
Almost everyone has heard the phrase Get it In Writing. The
reason for that is simple: If the parties fail to document their
agreement in writing, there is always room for future
disagreements. And more often than not, failing to draft good
written agreements leads to serious and often expensive disputes.
Nowhere is the need for written contracts more important than in
business. One of the most common mistakes that a business owner
can make is not having good written agreements. It is important to
seek the advice of an experienced business attorney to help guide
you through your particular situation and draft a solid contract that
fits your needs. Investing a small amount up front often saves
considerable time and money in the long run.

Technological Institute of the Philippines

1338 Arlegui St., Quiapo Manila

College of Engineering
Civil Engineering Department

CEP 523 CE52FA1

Submitted By:
RALLECA, MA. RHETTE SAMANTHA M.
1120203

Submitted To:
Engr. Butch Entice

November 25, 2014

Technological Institute of the Philippines

1338 Arlegui St., Quiapo Manila

College of Engineering
Civil Engineering Department

CEP 523 CE52FA1

Submitted By:
ESTRABON, MARIA ANDREA S.
1120005

Submitted To:
Engr. Butch Entice

November 25, 2014