Describe the purpose of a third party beneficiary contract and explain two common types. You have...

Describe the purpose of a third party beneficiary contract and explain two common types.

You have just won a contract with the federal government. You are the prime contractor and plan on using subcontractors. Explain the Privity of Contract Rule for this government contract.

What is breach of contract? Summarize the remedies available for breach of contract and damages.

Describe a liquidated damages clause and specify when this type of clause may be used in a business contract.

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Expert Solution

1. The purpose of third party beneficiary contract is that the third party beneficiary contract give third party legal right of the contract and can also sue the promisor directly for the breach of contract. the two most common types of beneficiaries are creditor beneficiary and donee beneficiary. the creditor beneficiary befit from the contract that one party promises another party to pay a debt that the promisee owes to third party. Donee beneficiary is when a contract is made for the sole purpose of giving a gift to the third party , the third party can sue the promisor directly to enforce the promise.

2. In goverment contracting ,the owner and the prime contractor enter into a written agreement. this is generated from the solicitation and ultimate award of the contract . the goverment has no privity of contract with subcontractor.

3. Failing to perform any term of contract , written or oral, without a legitimate legal excuses. this may include not completing the job, not paying full or on time, failure to deliver the goods, being late without any execuses.

Damages-----compensation, punitive, rescission and restitution. specific performance.

4. A liquidated damages provision in a contract specifies that a certain dollar amount is to be paid in the event of future default or breach of contract. damage can be liquidated in a contract only if the injury is either uncertain and difficult to quantify. the amount is reasonable and considers the actual or anticipated harm caused by the contract breach. The loss is difficult to prove.

keosha answered 11 months ago

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