In accordance with the contract, the contractor (first party) is obliged to perform certain works according to the instructions of the customer (second party) and present their results. The customer must accept a report on the actions taken and pay for the work. In this article we will analyze the concept and content of a contract, its types and essential conditions, as well as some other important aspects of the topic.
The concept of a contract
So, the contract is a document that allows you to officially formalize the transfer of work from the customer to the contractor. It spells out all the nuances, the essential terms of the contract, obligations and rights of the parties. It is worth noting that this paper is considered consensual. In other words, it takes effect after the parties have reached the necessary agreements. In addition, the document is bilateral (two parties to the household contract take part in the corresponding process) and onerous.
It must be borne in mind that today in a row it is quite widespread in civil law practice. Through its contractor and customer achieve different goals of economic importance. Among them may be the development of new facilities, the processing or repair of existing ones, and so on.
Subject of the contract
One of the elements of a contract of a theoretical nature is its subject. It is worth noting that it does not have to be materialized. In some cases, the subject may be directly the work, for example, during painting, car washing, as well as during loading and unloading operations. This agreement is widely used not only in civil relations of the standard plan, but also in the practice of economic activity. You need to know that the main goal of these relations is often the construction of industrial facilities, road or housing construction, as well as the production of equipment.
Contractors
To date, contracting for state needs is considered very common. In other words, the government takes part in contractual relations through public investment. This can be done directly or through specific representatives. You need to know that in a row is actively used in the maintenance of technological equipment. An excellent example is the work associated with the supply of sophisticated equipment or building structures. It is then that the buyer has the right to draw up a special contract with the manufacturer of these facilities, which will focus on the installation and subsequent adjustment of the units.
It is interesting to know that in the countries of the continental system, all types of contract are traditionally considered as an independent type of document. The opposite happens in the Anglo-American system: in a row it is one of the varieties of a personal employment contract. It is important to note that in this case, a significant difference between the contract is that the contractor is called an independent contractor and is given a certain independence in its actions.
Types of Contract
As we noted above, the studied variety of the contract is considered to be onerous, consensual and bilateral.In addition to the contract itself, today it is customary to distinguish a number of special types to which the general provisions of the tangent directly to the contract apply in accordance with generally accepted rules, if this does not contradict certain standards. So, the types of contract include the following:
- Building contract.
- Contract for the production of survey and design work.
- Household contract (we are talking about a contract for the provision of services for the performance of work of a domestic nature).
- Contract works for the needs of the state.
Terms of the contract
The essential provisions of the contract are the following provisions:
- Work is carried out using the materials of the contractor, his means and forces, unless other rules are provided for by the current contract.
- The methods and methods of the assignment are determined by the contractor.
- The risk of accidental damage or loss of materials, as well as other applicable property, is borne by the party that provided them, unless otherwise specified by law or this agreement.
- The risk of an accidental “failure” (in other words, the death of the result of the work performed) is borne by the contractor until the customer accepts the work performed under the contract.
- Dates of commencement and completion of work. It is worth adding that this period is usually agreed between the parties. If there is no agreement, then the document is not concluded. Violation of this condition is considered a delay and entails certain consequences. It is necessary to add that the parties may also establish deadlines of an interim nature for the performance of work. Today, the contract often defines liability measures for violation of the deadlines.
- If the contract price does not establish the price of the work, then it is considered concluded, however, payment is made at a price charged under comparable circumstances for work of a similar nature. It is worth noting that the price of work, as a rule, consists of the remuneration of the contractor and compensation for its costs.
Contractor Responsibilities
It is further advisable to move on to the obligations of the parties in the contract. To begin, consider the responsibilities of the contractor:
- Taking all necessary measures related to ensuring the safety of the property apparatus received directly from the customer.
- Using materials in an economical way. It is worth noting that in the case of using materials from the customer at the end of the work, you need to provide him with the appropriate report, as well as return the balance, if any. Today, the practice of reducing the price of work by agreement of the parties is quite common.
- Timely start of work, delivery of the finished result to the customer within the time period established by the contract.
- Compliance with requirements and proper quality of work.
When does work stop?
It is important to note that the conditions of the current types of contract include the immediate warning of the customer and the suspension of work until it is resolved under the following circumstances:
- Detection of unsuitability for the implementation of works of equipment, materials or technical plan documentation provided by the customer.
- Possible adverse consequences for the customer in the case of work procedures specified in the contract.
- Other circumstances that do not depend on the contractor, but affect the timing or quality of work.
It is worth noting that in case of refusal to fulfill these obligations, the contractor cannot refer to these circumstances when the final work result is delivered. In addition, the contractor undertakes to transfer to the customer information that relates to the operation of the subject of the contract, if necessary. One way or another, the contractor is responsible for the quality of the materials provided to them.
Contractor Rights
All types of a contract agreement that exist today presuppose that the contractor has certain rights. Consider the main ones:
- Do not start the execution of works or stop their implementation in case of violation of the contract by the customer.
- Demand compensation for losses that may be caused by the failure to provide assistance on the part of the customer in the implementation of work, if this assistance is provided for by the current agreement.
- If the customer evades acceptance of the result after 1 month and after a double warning, sell your work result. In this case, the proceeds, net of taxes with individual entrepreneurs under the contract and payments due to the contractor, are paid in the name of the customer in the deposit of a court or a notary.
- Retain the result of activities and other property that the contractor has left in case of violation by the customer of the terms of the contract.
Customer Responsibilities
Among the responsibilities of the customer, it is important to note the following points:
- Payment to the contractor of the stipulated price of work immediately after its final stage. In this case, the work must be performed properly. It should be added that a different payment procedure may be provided for by the contract, for example, partial or full payment in advance.
- Providing the contractor with assistance, subject to the current contract, in the performance of work. This can be gas or electricity, water or housing.
- Responsibility of the customer for the quality of materials and equipment provided to them.
- Inspection and acceptance of the result of work in accordance with the terms of the contract. It is worth noting that in case of defects, it is necessary to immediately inform the contractor about this.
- Notification of the contractor regarding the deficiencies found after acceptance of work within a reasonable time.
Customer Rights
The customer has the right to:
- Checking the execution process and quality of work at any time. However, he should not interfere with the activities of the contractor.
- Refusal to fulfill contractual obligations and demand compensation for losses caused by this decision if the contractor explicitly does not have time to close the work process on time.
- Refusal to fulfill contractual obligations at any time before the delivery of the result of work. In this case, it is necessary to pay the contractor money for the work already completed and to compensate for the loss from termination of the contract valid before this, within the difference between the price set for all work and the amount paid for the work already done.
- Establishing a reasonable time for the customer so that he has time to eliminate the mistakes made, with poor quality of work, which is obvious. In case of failure to fulfill this requirement, the customer has the right to refuse to fulfill contractual obligations or to instruct another person to correct the deficiencies, of course, at the expense of the contractor. The customer in this case, as a rule, requires compensation for losses caused by the situation by the contractor.
Failure to fulfill the terms of the contract
If the contractor does not fulfill the conditions specified in the contract regarding the quality of work, the customer has the right to demand:
- Gratis elimination of errors within a reasonable time.
- A commensurate decrease in the price of work.
- Reimbursement of own expenses for the elimination of errors. In this case, the right of the customer to eliminate the defects should be provided for in the contract.
Conclusion
So, we examined the concept, types, as well as the terms of the contract, gave relevant examples and studied some of the components of the document. In conclusion, it should be noted that the contract can currently establish a warranty period for the result of work. During this period, the customer has the right to demand the failure-free service of the subject of the contract and the statement of requirements that are related to the quality of implementation of the transferred work.It is important to note that the category of the contract is widely used in practice. We are talking about state needs (for example, state building), the implementation of entrepreneurial activity (for example, the provision of work or services in accordance with the type of contract considered) and other aspects of public life.