Despite careful efforts at estimating, arranging for manpower, negotiating supply contracts, and other sound planning, a job still goes sour on occasion. Somewhere along the way, you decide you have had enough and want to walk away.
Your contract may contain the phrase “per plans and specifications.”
Do these words affect your scope of work? Your subcontract probably says that the terms and conditions of the general contractor’s agreement with the owner are incorporated into your agreement. What is the legal effect?
In contract law, courts have characterized damages in a number of ill-defined and confusing ways. Monetary claims have been called direct, indirect, actual, speculative, estimated, liquidated, special, consequential, incidental, and punitive.
Having clear and complete terms and conditions of a purchase order (PO) or "acknowledgment form" can make the difference between prompt payment from a satisfied customer or claims and litigation. The terms and conditions should disclose the precise requirements of the PO.