Domestic Building Contract Case Study

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Register to read the introduction… This will ensure that the contract is validly entered into and reflects the agreed intent of all parties involved.

Signing - All documents that form part of the contract should be signed by all parties and any hand-written amendments that have been made to them should be initialled. This step means all parties have physically acknowledged all documents that constitute the contract.
It’s important to note, the person who actually signs each document must have the authority to do so.

Sealing - Affixing a seal to the included documents once the contract is finalised is good practice, even though the Corporations Act has made this step generally unnecessary
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These provisions include: * Definitions of key words or expressions within the documents themselves * An order of precedence for the various contractual documents (Clause B2 ABIC MW-2008) * Provisions for the resolution of discrepancies by the superintendent (Clause B1,Clause 8.1 AS 4000-1997)
Definitions of Key Words
Section 31 of the Domestic Building Act States: 1. A builder must not enter into a major domestic building contract unless the contract o. has a separate section that defines the key words and phrases used in the contract (for example, prime cost item and provisional sum) p. Indicates whenever a defined word or phrase is used that that word or phrase is defined in the definition section

Order of Precedence
An order of precedence sets out a hierarchy of documents to apply in the event of an ambiguous contract term
ABIC MW-1 2003 - Clauses B2
“Sets a default order or precedence for contract documents, being: * Special conditions (ranked first) * The contract conditions and schedule

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