CONTRACT

WRITING
GROUP 5
V I N C E PAT R I C K B R O Z O
LOUISE ALEXANDRA MONTERO
NICAMAE NIOG
JOANDREY SUAREZ
 WHAT IS A CONTRACT??
A contract is basically an agreement between two
parties creating a legal obligation for both of them to
perform specific acts. Each party is legally bound to
perform the specified duties such as rendering a
payment or delivering goods.
 Contract Writing

Writing a contract is the

process of describing the
expectations of all parties
agreeing to the terms of
the relationship under
the contract.
 Elements of a Contract
• Offer
An offer is a promise to act or refrain from
acting, which is made in exchange for a return
promise to do the same..

•Acceptance
Acceptance of an offer is the expression of
assent to its terms. Acceptance must generally
be made in the manner specified by the offer

•Consideration
Each party to a contract must provide
something of value that induces the other to
enter the agreement. The law calls this
exchange of values “consideration.”
•Mutuality of Obligation
Closely related to the concept of consideration is the mutuality of obligation doctrine. Under
this doctrine, both parties must be bound to perform their obligations or the law will treat the
agreement as if neither party is bound to perform.

•Competency and Capacity

A natural person who enters a contract possesses complete legal capacity to be held liable for
the duties he or she agrees to undertake, unless the person is a minor, mentally incapacitated,
or intoxicated.

•Writing Requirement
Not every contract need be in writing to be valid and binding on both parties. But nearly every
state legislature has enacted a body of law that identifies certain types of contracts that must
be in writing to be enforceable. In legal parlance this body of law is called the statute of frauds.
https://contracts.uslegal.com/elements-of-a-contract/writing-requirement/
 Interpretation of Contracts
Under the Articles 1370 to 1379 of the Civil Law of the Philippines

Art. 1370. If the terms of a contract are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of its stipulations shall control.
If the words appear to be contrary to the evident intention of the parties, the latter shall prevail
over the former. (1281)
Art. 1371. In order to judge the intention of the contracting parties, their contemporaneous and
subsequent acts shall be principally considered. (1282)
Art. 1372. However general the terms of a contract may be, they shall not be understood to
comprehend things that are distinct and cases that are different from those upon which the
parties intended to agree. (1283)
Art. 1373. If some stipulation of any contract should admit of several meanings, it shall be
understood as bearing that import which is most adequate to render it effectual. (1284)
Art. 1374. The various stipulations of a contract shall be interpreted together, attributing to the
doubtful ones that sense which may result from all of them taken jointly. (1285)
Art. 1375. Words which may have different significations shall be understood in that which is
most in keeping with the nature and object of the contract. (1286)
Art. 1376. The usage or custom of the place shall be borne in mind in the interpretation of the
ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily
established. (1287)
Art. 1377. The interpretation of obscure words or stipulations in a contract shall not favor the
party who caused the obscurity. (1288)
Art. 1378. When it is absolutely impossible to settle doubts by the rules established in the
preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the
least transmission of rights and interests shall prevail. If the contract is onerous, the doubt shall
be settled in favor of the greatest reciprocity of interests.
If the doubts are cast upon the principal object of the contract in such a way that it cannot be
known what may have been the intention or will of the parties, the contract shall be null and
void. (1289)
Art. 1379. The principles of interpretation stated in Rule 123 of the Rules of Court shall likewise
be observed in the construction of contracts.
https://lspuoblicon2015.wordpress.com/category/ii-contracts/chapter-5-interpretation-of-contracts/page/1/
 Why are Contracts Important
•Hiring an employee or contractor
•Entering a partnership or a joint venture
•Franchising a business
•Selling or renting property
•Buying or selling goods or services
•Entering into an agreement that will take more than a
year to complete
•Interacting with government agencies
 Reasons to Consider Not Using a Contract
It does not address all possible situations. A business contract should
present all problems that may arise and their solutions. If it does not
include every possible problem, amend the contract before signing.
It is not clear. A good contract is specific. Any contract you sign should
have clear terms and conditions.
It is verbal instead of written. When entering or amending an agreement,
you should always get it in writing. Verbal agreements are hard to enforce.
You can't usually sue someone for breach of contract if your agreement is
based on a casual comment or an indefinite prediction.
 Reasons to Consider Using a Contract
You want to make a counteroffer. If you do not agree with all the terms of
the offer, don't sign it. Consider making a counteroffer. You can also cross
out, initial, and amend the parts that you don't agree with.
It can protect confidentiality. A carefully written contract can include a
non-disclosure agreement that requires parties not to make some
information public.
You have already made a verbal agreement. A verbal contract is not
enough for most transactions, but it is an important first step before
signing a written contract. Before entering a written agreement, speak
with the other party about what the contract will include.
 Common Mistakes
Not including enough detail. Never use general words when you can be specific. That
way both sides have the same expectations. The level of detail depends on the kind of
project.
Not understanding legal terms. You can write a contract using standard language or
legal terms, but keep in mind that some words have specific meanings under the law. In
most cases, ordinary meanings of words will prevail.
Not defining terms. If your contract refers to certain parties, timeframes, or products,
define these common terms the first time you use them. The meaning will be clear
throughout the contract.
Not being clear about how long the offer is on the table. Usually, offers can only be
accepted for a reasonable amount of time. What is reasonable is subjective so include a
timeframe for accepting the offer.
 Frequently Asked Questions
 Do contracts have to use legal terms?
 Can you use a letter of agreement (LOA) instead of a formal agreement?
 Which jurisdiction's laws apply to a business contract?
​ Can you take a company to court if it breaks your contract?
 Do you have to notarize contracts?
 Do you have to make contracts public?
 Are all contracts legally binding?
 When can you break a contract?
 Do you need a lawyer to write a contract?
 Steps in Writing a Contract
1. Cover Page
2. Introduction of the parties involved
3. Beginning and end dates
4. Reason for early termination
5. Details about the exchange
6. Ownership specifics
7. Schedule
8. Format
9. Approval and Revision
10. Business policies
11. Payment information
12. Specifics about you legal relationship
13. Representations and Warranties
14. Disagreement
15. Assignment
16. Legal Boilerplate
17. Signature Page
https://www.upcounsel.com/how-to-write-a-contract
 Bidding Proposal
A successful small business requires a basic building block to
operate: clientele.
In order to attract clients, it is necessary to know how to write up a
bid for a contract. Without clients, a business never makes a profit.
Start on the right track by composing a contract bid that wins
business. Believe it or not, you don't have to focus on the cost.
Make no mistake, the numbers are important, but your winning bid
is about ideas and experience.
 Bidding Proposal Contract
Why Are You the Best Choice?
Write down, in as few words as possible, how your business will
be the best choice to serve the client.

Focus on the attributes of your company in a way that clarifies

value to the customer while casting a favorable light on the
company's best assets.

Don't be shy. As they say, "put your best foot forward." You want
to give your bid reviewers confidence that you offer something
beneficial the other bidders don’t.
 Bidding Proposal Contract
Provide Ideas and Answers

Tackle the problem of the target organization with ideas and

answers. For instance, if the client seeks a textile printer to quickly
produce hand-printed cotton yardage for purses, point out that your
studio's close proximity to the client's factory will expedite the process,
and note that the family of fabric artists you employ are fine-tuned for
high-quality quick-turnaround work. Then, offer to establish a work
schedule that cranks out high volume in as short a time as possible.
Impress the client with openness to input and a promise of a creative
problem-solving management team who will work with the client on any
matter.
 Bidding Proposal Contract
Your Qualifications and Experience

This section serves an important function by showing the possible

client the company's strengths, as well as its efficacy in the face of
potential problems. Business Link, a British business information website,
states that "tailored biographies should highlight successes with similar
projects, as well as qualifications and experience." Keep things short and
sweet by focusing on topical points of experience only, not the entire
resume history. Give the group of people who will review the bids
confidence that your experience will ensure a smooth operation.
 Bidding Proposal Contract
Address Legal Concerns

Government contractors may need to consider that some public

bids will be available for anyone to see through FOIA, the Federal Open
Information Act. If some of your data needs confidential status, such as
proprietary information you don't want your competitors to know, include
a notation in the bid regarding those paragraphs or sentences you want
redacted in the case of an FOIA request. Your bid should include
language that outlines legal redress for serious problems, including
options for mediation or civil legal action. Verify all legalese with legal
counsel before including it in your official final document.
 Bidding Proposal Contract
Provide Numbers to Show Value

Show numbers to provide obvious, easy-to-prove value over

competitors. Research how much comparable businesses charge for the same
service, and determine ways to undercut their costs add value. Be creative if
nothing obvious comes to mind.
If the place across town makes widgets for $5 apiece, write a breakdown of
production, shipping or other operating costs that cuts 50 cents from the price
of your widgets: Perhaps cut your profits slightly, or use a smaller amount of
packaging with a more bare-bones design. At any rate, show in the price
breakdown how you can offer a great product for a cheaper cost.
 Bidding Proposal Contract
Items you will need:

•List of costs for project

•Bid information
•Employee biographies or resumes
•Legal counsel

https://smallbusiness.chron.com/write-up-bid-contract-19069.html
 Bidding Rejection
Though it is never easy to turn a contractor or
company down for a job, politely notifying them of the
situation is the appropriate thing to do. Writing a letter is a
professional yet non-confrontational way of
communicating with the company. The tone of the letter
should be courteous and explain why the bid was turned
down. Keep the relationship amicable by indicating a hope
for future collaboration despite this particular situation not
working out.
 Bidding Rejection Letter
1. Format the letter with a professional tone and structure. Use company
letterhead, place the date on top and include the bidding companies name and
address. Write an appropriate greeting, such as “Dear Mr. Jones.”

2. Thank the company for their bid. Indicate the project and date of the
particular bid. If you have several projects going at once, some companies
may have submitted numerous bids. Make sure they understand the specific
bid that is being denied.

3. Complement the contractor on their proposal, past work or reputation. Find

something nice to say about the company so that the letter remains courteous
and positive.
 4. Reject the bid. Explain the reason for the rejection, such as the estimated
cost was too high or that another company had more experience with the
particulars of the project. You may also say if there was something wrong with
the bid, which can help the contractor to avoid making the same mistake in
the future. For example, the bidding company may use several layers of
subcontractors, a factor that did not work well for you.

5.Close the letter by saying that you look forward to possibly working together
in the future. It can be good business practice to always keep the door open
to future opportunities; you never know when this particular contractor will be
perfect for an assignment down the road.

6. End the letter with a proper closing, such as “Sincerely.” Sign the letter to
make it official, as well as to show a personal touch.
Warning
•Always send an official bid rejection letter instead of simply
calling the contractor or company. Having the rejection in
writing avoids any confusion should the rejected party attempt
to take action against your business contending there was a
contract or promise of work.

https://smallbusiness.chron.com/write-bid-rejection-letter-55134.html
THANK YOU! 