1. Resolve Business Disputes and Select and Prepare a Construction Contract Intro to On-Line competencies Lesson Two Cert IV - M. S. Martin January 2012

2. Todays Lesson Review Contracts Continue contract activities, which will incorporate dispute resolution Introduce on-line competencies, handout on registration to web etc. Cert IV - M. S. Martin January 2012

3. Lesson 2 – Contracts / Disputes Chapter 1 – Contract Law Cert IV - M. S. Martin January 2012

4. A Building Contract A building contract is where one person, the builder, agrees to supply labour and materials for the construction of a building (or other building works) for the benefit of the client who agrees to pay for such works. Contracts are vital to the construction process Cert IV - M. S. Martin January 2012

5. Contracts and Disputes By writing a contract, each party knows its rights and responsibilities if there is a dispute, it may be resolved without going to court; or if it does go to court it will be sorted out quicker and therefore more cheaply Cert IV - M. S. Martin January 2012

7. The Basics of Contract Law Chapter One – from page 2 You may have a simple understanding of a contract as a piece of paper that contains an agreement, signed by say a builder and a client For the law to recognise this as a contract three factors are required to be present: an offer an acceptance and a consideration Cert IV - M. S. Martin January 2012

8. Offer Cert IV - M. S. Martin January 2012 An offer is a description of the terms under which a person is prepared to enter into a contract with another An offer should ? Review your text, what ?

9. Acceptance Cert IV - M. S. Martin January 2012 Acceptance is the clear and final agreement by the other party to the terms of offer made. Once an offer has been made, and it has been accepted then an ‘agreement’ has been made. The offer and….. ? What else does the text say ?

10. Activity One A concrete contractor and builder are talking at the hardware store. The builder mentions that he can’t find a concreter to do a large coloured patio as part of building he is doing. The concrete contractor offers to make a coloured………… review the text and discuss Cert IV - M. S. Martin January 2012

11. Answer to Activity One The answer is that by the builder saying “…$30,000 was a bit much” he has rejected the offer, and it is not possible to make an acceptance of any agreement The builder and the first concreter do not have a contract The first contractor can not bill the builder for $30,000. The first concreter may be able to argue in court that he suffered ‘damages’ and claim those costs back Damages might ……….. ? Review the remainder of the answer… Cert IV - M. S. Martin January 2012

12. Consideration Cert IV - M. S. Martin January 2012 You can think of a consideration as ‘the price for which a promise is purchased’ Proper consideration must have existed in the mind of the party making the offer, for a contract to be valid. In many contracts the price is the consideration or an important part of the consideration.

13. Activity Two Offer, Acceptance, Consideration A carpenter and builder meet at the pub Saturday night and the carpenter mentions ………… read on Cert IV - M. S. Martin January 2012

14. My Answers to Activity Two Offer (a description of the terms…) therefore: – The description provided by the builder to frame up the house Acceptance (the clear and final agreement by the other party to the terms of offer made…) therefore: – The carpenter said ‘yes’ to a lump sum for his work Consideration (Proper consideration must have existed in the mind of the party making the offer.. The price an important part of the consideration….) therefore: – Here lies the grey area for me, the carpenter realises the job is more complicated… did the builder describe it sufficiently ? Its said that the builder answered every question…? Hence in my opinion, we now have a dispute Cert IV - M. S. Martin January 2012

15. References Competency text for ‘Resolve Business Disputes and Select and Prepare a Construction Contract’ Websites as listed below http://www.fairtrading.nsw.gov.au/default.html http://www.google.com.au/imghp?hl=en&tab= wi Cert IV - M. S. Martin January 2012