Legal Concepts and Contracting

Contracting Basics: What All the Ts and Cs Mean

Because supply management professionals must ensure that contracts protect the interests of their organizations, the ability to understand contract clauses is a key skill. This seminar addresses many of the standard terms found in most contracts as well as the impact of electronic purchasing. Discussions include key terminology and clauses that you will be able to use when forming agreements with your suppliers. Extensive examples of contract language are provided. You are encouraged to bring your own contracts, clauses, and/or purchase orders for a hands-on review session. For additional courses in ISM's Legal and Contracting series, see also Purchasing and the Law: The Basics You Need to Succeed, Contract Writing for Purchasing and Supply Management: Beyond the Basics, Legal Considerations of Software Licensing and Other Technology-Related Agreements, and Performance-Based Statements of Work (SOWs): Maximize Supplier Performance.

Bring copies of your Ts and Cs, purchase orders or contracts for a hands-on review session.

Who Should Attend

Both new and experienced contracting, purchasing and supply management professionals who desire to understand basic contract premises and law, as well as a detailed introduction to contract terms and conditions. Suggested Prerequisite: Purchasing and the Law: The Basics You Need to Succeed

You Will Learn

• The elements of a contract
• The use of common contract clauses (terms and conditions) for goods and services
• When different clauses should and should not be used
• How to draft better contract clauses
• The impact of electronic purchasing on contracting

Course Outline

1. Overview of laws that impact contracts; Review of basic contract law concepts
2. Contract formation: How to construct legally binding agreements
3. Interpretation of contract language; Legal wording that is and is not necessary in agreements
4. Purchase orders, blanket orders, request for proposals, requests for quotation, letters of intent and contracts
5. Contracts and electronic purchasing; How widespread use of high-tech forms of communication impacts contracting
6. Detailed discussion of a variety of contract clauses (terms and conditions) for goods and services
7. Drafting contract terms and conditions from both the buyer’s and seller’s perspectives