Choosing an appropriate contract for the cleaning services is crucial to the successful performance of the service provider (Cross et al. 2012). The type of contract dictates the performance risk and costs that are imposed on the contractor. There are different types either of contracts, which can be applied to this exercise individually or in combination.
Obtain Information Required To Create a Statement of Work and Request for Proposal
A request for proposal (RFP) refers to a document, which solicits proposal by a company interested in procurement of a service to potential service providing firms to submit a business proposal. This document works hand-in-hand with a statement of work (SoW). SoW refers to a document routinely used in procumbent, which defines the specific job activities and timelines for the supplier delivering the services to a client (Cross et al. 2012). Typically, the SoW includes detailed requirements and price with standard terms and conditions. Often, the important document accompanies an RFP.
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To create these two documents, I will need to obtain information from various departments managers whose areas will be cleaned by the contractor. In this view, I will have to communicate with each department manager on regarding this matter. This will be achieved through an inter-departmental communication involving systems that allow us to communicate and work harmoniously with these managers. An email will be the most appropriate tool to collect any relevant information required to produce the SoW and RFP.
Describe At Least two Types of Contracts Appropriate for This Exercise
There are two major types of contracts, which are appropriate for this exercise. These are bilateral and unilateral contracts. In contracts, one side offers something of some value to the other, whether it is a service or a tangible good or promise to do something (Seshadri, 2005). This persuades or induces the other party to agree to the contents of the contract. In bilateral contracts, both sides offer something of some value as a consideration. It is considered binding on both parties immediately after the acceptance and signing of promises. However, a unilateral contract only binds the party that promises some of the value to the other party. Here, the unbound side is not obliged in any way until he/she accepts the contents of the contract by performing the requested obligation (Tepper, 2012).
In bilateral contracts, both sides make promises and are legally obliged to perform these promises at some future time. Here, the offeree guarantees that the offeror will not violate the terms and conditions of the contract. Both sides have equal rights in the contract. The offeree and the offeror have an equal degree of responsibility courtesy of the “mutual contractual obligation” (Tepper, 2012) clause of this contract.
A unilateral contract is whereby one party makes a promise (Seshadri, 2005). As the offeror, I would make a proposal or promise to pay a certain amount if the offeree performs the cleaning work as a requested act that is known as the basis of a legally binding contract. The offeree’s performance of the act constitutes an acceptance of my offer and thus executes the contract (Tepper, 2012). However, the acceptance of this offer is subject to revocation until the offeree completes the performance. This contract is one-sided simply because the offeror, who makes the proposal, is legally bound. In contrast, the offeree might decide to act as requested or even refrain from doing the agreed work. Whichever the case, the offeree cannot be sued for failure to perform or for abandoning performance after starting it (Seshadri, 2005). This is because this party did not make any promises in the beginning. For this reason, the bilateral contract is the most appropriate for this case scenario.
Understanding a Contract
A bilateral contract is the most suitable in this exercise. There are various reasons why I have chosen this type of contract over a unilateral contract for this exercise. For one, a bilateral contract has something known as “mutuality of understanding” (Tepper, 2012). This implies that each side of the contract has an equal degree of commitment to the contract. However, in a unilateral contract, only one party (the offeror) is allowed to undertake the contract and he/she cannot pay the other party (offeree) unless the commitment is completed. This power does not apply to the offeree. Another advantage of using the bilateral contract relates to the fact that it guarantees that the contracted party will deliver his/her duties as indicated in the contract. Normally, the contract is an exclusive agreement between the two sides and the contract is based on a “mutual contractual obligation” (Seshadri, 2005). Both the offeree and the offeror guarantee that they will not break the terms and conditions of the contract. This gives both parties an equal position in the agreement.
Overall, a contract whether spoken or written is an agreement between two or more parties with obligations, which are legally enforceable. Through a contract, the relationship between business entities is regulated because it entails the duties, rights and other terms and conditions to which both parties have mutually agreed upon and signed. If either side breaches these agreements, he/she will be held legally accountable.
References
Cross, F. B., Miller, R. L. R., Cross, F. B., & Cross, F. B. (2012). The legal environment of business: Text and cases: ethical, regulatory, global, and corporate issues . Mason, OH: South-Western Cengage Learning.
Seshadri, S. (2005). Sourcing Strategy: Principles, Policy, and Designs . http://dx.doi.org/10.1007/b106908 .
Tepper, P. R. (2012). The law of contracts and the Uniform commercial code . Clifton Park, NY: Delmar Cengage Learning.
