SDAE Projects

February 2024. Navigating the Legal Landscape : Why and What you should know about Contract?.

[Audio] Contracts are an integral part of running a business. As we plan for February 2024 it is essential to understand the legal climate and the role that contracts play in it. This presentation will examine why contracts are important and what the consequences may be for entering into a contract. We will look at how contracts are applicable to regular tasks like requesting a legal review submitting bids and getting approvals. We will also review how contracts dictate the negotiation process such as the duration of a contract bank guarantees insurance requirements and quotation information. After this presentation we will have a complete understanding of the importance and implications of contracts..

[Audio] Understanding the legal landscape in February 2024 involves understanding the significance of contracts. Contracts are a legally binding agreement between two parties which both parties must adhere to. This slide shows the Inokom Plant has multiple modular companies with a Director appointed to each except for Sime Darby Auto Bavaria Sdn Bhd. It is important to note that the execution of documents for these companies must be done by the company's Director as required by Section 66 of the Companies Act 2016 (Act 777). Knowing laws and regulations of a contract is crucial as not following them can result in severe consequences..

[Audio] Contracts form the legal landscape by setting out the obligations rights and responsibilities of each party involved. Understanding the terms of a contract is essential as it defines the terms of the agreement. The key element of any contract is a definite statement of the terms of the agreement including what each party is expected to give or receive. Acceptance is when both parties understand and agree to the offer terms and consideration is shown when both parties demonstrate a seriousness of entering into the agreement and their intention to create a binding agreement. Understanding these principles is important to know how they apply to our own contracts..

[Audio] Understanding the legal landscape of contracts can be complex and intimidating. It is essential to be aware of the types of contracts and the situations in which they can be applied. Express contracts involve the parties agreeing to the terms of a written or verbal document. Implied contracts have no need for a written agreement instead being enacted through the parties' actions. For instance if a person goes to a salon for a haircut and has already paid for the service then this is an implied contract. If either party does not comply with the agreement this could result in confidential information being exposed losses not being taken into consideration prosecution and improper actions throughout the project. It is important to understand the types of contracts and the possible consequences of not following the agreement in order to navigate the legal landscape..

[Audio] If you experience a breach of contract the action you take depends on the type of breach. A material breach is a violation that affects the main portion of an agreement and basically makes the contract void. For instance if you agreed to purchase a car but it arrives damaged this would be considered a material breach. On the other hand a minor breach is when a small part of the agreement is not fulfilled but the general contract can still be completed. For example if the car you purchased had a malfunctioning button on the dashboard this would be considered a minor breach. If the breach is material you can request a refund or compensation. With a minor breach you can request minor damages or the issue can be resolved..

[Audio] From the slide multiple considerations need to be taken into account for navigating the legal landscape of contracts. These contracts need to be upheld to the highest standards in terms of performance and quality. A common oversight is the lack of proper monitoring after the contract is executed which may result in non-conformance of specifications items and locations. Thus it is crucial for the P-I-C to analyze these with accuracy..

[Audio] When negotiating and entering into contracts it is essential to be mindful of the considerations required to ensure appropriate legal practices. The language used should be certain without any multiple interpretations and both parties should comprehend their responsibilities and duties precisely. Moreover all contracts ought to be reviewed by Sime Darby Motors Legal with both the contractor and the project manager verifying that the terms are satisfactory. Lastly to make sure that the terms of the contract are legally enforceable and appropriate any changes ought to be accepted by Motors Legal..

[Audio] Understanding the roles and responsibilities of each department related to contract formation and management is essential to ensure effective agreements. Project Managers oversee the project and manage resources Purchasing selects the best suppliers and negotiates prices Legal Affairs handles the legal aspects of contracts such as formation negotiation and review Regulatory Compliance ensures the contracts comply with laws and regulations and Contract Administration handles administration risk assessment identification record keeping and dispute resolution. A clear understanding of who is responsible for each task in the contract process is key to a successful agreement..

[Audio] Contract management is a critical part of a project manager's job. This table outlines the elements of contract management from formation and negotiation to risk assessment and record keeping. It is important to ensure that both parties understand and agree to the terms of the contract and that they satisfy Inokom's interests. Regulatory compliance and dispute resolution help to protect the interests of both parties. Additionally regular contractor evaluation helps to ensure that the standards and criteria established in the contract are being met..

[Audio] Closing in on February 2024 an awareness of the ever-evolving legal landscape is of paramount importance. This is particularly pertinent when it comes to contract business law and risk management. To ensure that the relationship between two entities runs smoothly regular performance and compliance assessments must be conducted communication with the counterparty should be established and kept open and the contract management process should be standardized. An examination of common risks and problems that could occur throughout construction or during the contract period is also highly recommended as a way to be proactively prepared for any possible business challenges..

Thank You.