Report on Contract Management and Legal Aspects- Between two parties which is enforceable by law

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Contract Management and Legal Aspects


 In general, terms, a contract is an agreement between two parties that is enforceable by law and have legal consequences. The below task is overall description about contract and  contract between two organisations.


The Style Housing Fashion Trading Company and Gulf Ready Made Garment Manufacturing Co. LLC are the two organisations of Abu Dhabi where style-housing fashion trading company represents a fashion retail company presenting trendy and elegant merchandise. Gulf readymade garments manufacturing company LLC is a company engaged in manufacturing of ladies nightwear.  The style company has made a contract with the Gulf company for supplying six hundred (600) dozens of ladies nightwear by end of the year by 6p.m.  The payment will be made after one year of contract. A contract is formed, but the essentials will help us in understanding whether it is a valid contract. 


 Offer and Acceptance- An offer is to everyone who wishes to accept the promise of the offeror. An Acceptance occurs when an offeree with mutual concern agrees to the terms and conditions of the contract by approving considerations or money in order to finish the offer. Here offer is made by Style company and acceptance is done by the other organisation.. The acceptance on part of Gulf Company was absolute and unconditional. There is communication. It is a valid contract. Other essentials that lead to formation of contract are there must be lawful consideration and the parties must be competent to contract. The intention must be clear and with free consent( Sen,2015). 

Solution- we can conclude that contract becomes invalid if it does not fulfil any of the formalities and is not enforceable by law. For making it valid, the parties should fulfil above criteria.


The subject- matter of contract is the terms and conditions covered by this legally binding agreement.  If Style Fashion Company and Gulf manufacturing company, the two parties are involved in contract negotiations, then the words subject to contract or without prejudice indicates that negotiations are ongoing and the contract is not final. It involves the purchase of equipments and provision of services (Stone & Devenney, 2017). . The reasons illustrated as under:-

1. Incorporated and Terms and Conditions

The Style Company is considered to be the buyer and is a part of applicable purchase order. Here the Purchase Order are referred to the Agreement. A copy of Vendor’s Quote and Equipment Specification were attached. 

2. Equipment and its delivery

The Gulf Company have taken care of the loss or damage to the items and it will remain with them until delivered. Inspection done by the Style company about the delivered components and it was found undamaged. The Gulf Company will be responsible for any trashes.

3. Consent

There was no approval, consent and  any authorization with any government authority or any  third party for beheading , delivery and performance by the seller as  considered in the agreement4. Delivery time and date

Delivery time and date have been specified by Style company organisations in the contract.


Contents Of Contract

a. title of contract- title of contract is considered to be less important than content. However, the title gives a general idea of what the parties intend the contract to be.

b. introduction or purpose- The section describes the background and purposes of the contract.

c. subject-matter of the contract.

d. place and date.

The contract conditions determine the party’s obligations. There are conditions that must be before, during or after the contract duty. A contract sometimes requires a particular act that occurs before an act or occasion, which is known as condition precedent  The Style fashion company while entering into contract had a oral agreement with the Gulf Company, where the Style company promised that if the goods are delivered on time, then they will pay twice the amount decided. The condition has a condition precedent. Style Company is not obligated to do unless the goods are delivered on time. Once, the Gulf company delivers on time, the Style Company is obligated to work on its promise (Adriaanse, 2016). They will have no obligation.

Breach of warranty-

Warranties are violated when the parties break their  promise or the goods are not as shown. The Gulf Company may credit the warranty by replacing or refunding. 


Performance must match contractual obligations. A contract should be performed at the time and place given while making a contract .( Sullivan & Hilliard, 2016 ). Disputes may arise during performance of contract. The arbitration award shall be final and binding upon parties.

Solution- Disputes arises when the validity, performance and interpretation of contract is not settled by consultation of both parties. When disputed cannot be resolved by parties through good faith negotiations, either party can submit the dispute to be resolved by Peoples Court.


For choosing the most adequate mechanism, a number of factors needs to be taken into account 

1. Negotiations- It means parties who are engaged in disputes comprises upon an agreed resolution of dispute.

2. Mediation- It is a negotiation that is facilitated by an agreed trained mediator. The benefits of mediation includes- cost, confidentiality, control and compliance.

3. Arbitration- The parties should agree upon neutral power and not on resolution of their disputes but should impose a legal solution to it.

4. Litigation- It is same as arbitration. A neutral has the power in implementing a resolution that is legally binding on the parties.


Contract Management is the Management of contract from vendors, customers, employees etc. In order to make the contract management effective, it requires an understanding in every step including contribution, creation and utilization. For implementation of contract, steps to be followed in contract management are- The parties should make sure that investigation is done and should have  legal background for any  contract or  transaction .(Klee, 2018). Working with representatives of the company, one should be familiar with the criteria that are required in a contract , signature authority policies and procedure that have been established by the company.  For warranty, one should prepare a time schedule for drafting, discussion, review and similar other activities (Hughes et al., 2015). From the above case, we can see that the Style Company and the Gulf Company takes into account of all these mechanism.

Solution- Contract management will only lead in a proper way if there is arrangement in the delivery and the parties is satisfied with that. There are no disputes or surprises and the supplier is co-operative and at the same time responsive. The organisation needs to understand the obligations under contract.


From the overall task, we can conclude that for entering into contract, it should fulfil its essentials and if there is breach or any kind of illegal action, it is not enforceable by law. Besides, there are mechanisms, which help in implementation of contract and also provide a solution to it.

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