Analyse The Use Of Contractual Remedies For Managing Risks In Supply Chains

Front 1

Types of Contract terms

Back 1

Express,
Implied,
Warranty,
Condition

Front 2

Caveat Emptor

Back 2

Common law principle that means: Let the buyer beware

Front 3

Remedies for Contract Failure

Back 3

Damages,
Specific performance,
Injunction,
Quantum Meruit

Front 4

Meaning of Liability

Back 4

The legal and financial responsibility or obligation of an entity in a situation.

Front 5

Types of Liabiiity

Back 5

Strict Liability and,
Vicarious Liability

Front 6

Indemnity Clause

Back 6

Assigns primary liability to the other party in the contract

Front 7

Indemnity clauses might include:

Back 7

Costs or Debts,
Loss or damage to the buyer's propertyas a result of neligent or defective work,
Business losses incurred by a suppler's poor advice,
Injury to staff, cusomers or 3rd parties caused by negligence

Front 8

Limitation of liability

Back 8

Exclusion clause is applied to contract clauses which,
Totally excludes one party from the liability which would otherwise arise from some berach of contract, or which,
Restrict or limit its liability in some way, or which,
Seek to offer some form of 'guarantee' in place of normal liability for breach of contract.

Front 9

Testing, inspection and acceptance clauses may be used to stipulate:

Back 9

The buyer is not legally bound to accept delivery of goods before inspection and/or testing of the goods to ascertain that they confirm to specification and are fit for purpose and,
That the buyer is to be allowed a reasonable time to inspect and test incoming goods

Front 10

Liquidated damages purpose?

Back 10

To put the injured party into the position it would have been in if the contract had been properly performed.

Front 11

Force Majeure Clauses purpose?

Back 11

To release the parties from liability in circumstances where their failure to perform a contract results from circumstances which were unforseeable, for which they are not responsible, and which they could not have avoided or overcome.

Front 12

Force Majeure circumstances?

Back 12

'Act of God',
Flood,
Earthquake,
Fire,
Storm,
And other natural and pysical disasters,
War,
Revolution,
Riot or Civil disorder,
General industrial disputes and so on.

Front 13

Intellectual property rights include?

Back 13

Technological inventions,
Products carrying a distinctive design,
Trade marks or service marks,
Copyright

Front 14

Opportunities in international sourcing?

Back 14

Access to required materials, facilities, and/or skills,
Access to a wider supplier base,
Opportunities for cost savings,
Competitive quality,
Reduced regulatory and compliance burden,
Leveraging available ICT developments,
Ability to compete

Front 15

Downside risk in international sourcing?

Back 15

Socio-cultural differences,
Language barriers,
Legal issues,
Logistical and supply risks
Technical risk,
Increased security risks to personnel and operations,
Exchange rate risk,
Payment risk,
Difficulties in monitoring and assuring quality, environmental and ethical standards,
General STEEPLE factor risks

Front 16

Compliance, legal and reputational risk include factors such as:

Back 16

Differences in legal frameworks,
Issues around applicable law,
Differences in ethical standards and the cost and complexity of managing them,
A way to minimise risk is to use incoterms

Front 17

Model Form Contracts?

Back 17

NEC,
FIDIC

Front 18

Use of risk registers and notices

Back 18

Management tool to support project risk in a collaborative and proactive manner

Front 19

Compensation Events

Back 19

Mechanism through which contractors can submit claims to compensate them for the negative effect of contingencies