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Why a contract is really essential? Why not we pay and get goods? Is contract a real requirement? Well, if it is, what is the starting point?

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Question added by Muhammad Rizwan , Executive Procurement (Technical) , FFCL
Date Posted: 2015/06/28
Chaitanya Damle
by Chaitanya Damle , Senior Contracts Manager , Tata Communications

Contract can be thought as writing down the common understanding that the 2 parties have between them, where one party has the interest in rendering the services or buying goods from the other and pay the applicable charges for the same. Contracts would also capture the timelines of the service delivery and penalties if the commitments are not met within the agreed timelines.

The starting point would be to capture details of the goods or services to be provided with associated charges. Added to it would be the delivery timelines and paybacks in case the commitments are not met in time. It should also include the scope to amend the contract based upon the change requests and also a DOP (Delegation of Power) with people who could sign the amendments depending upon the concerned amount.  

Krishna Nair
by Krishna Nair , Contract and Legal Executive , DP World

Contract is very essential, as entering into a business both the parties have their on obligation and responsibility towards the common objective of this business 

Its starts right from the acceptance of the deal between the parties 

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