Contracts Essay

252 Words2 Pages
Using the Webster library, locate and read an article on contracts. Based on your reading of the article, post a comment on why it is important for a procurement manager to understand contract formation. It is important for a procurement manager to understand contract formation. Because in order to form a legally binding contract, six basic elements of contract formation must be satisfied. The parties to the contract must have capacity to contract; both parties must strate the mutual assent to be bound to the contract terms; both parties must give consideration; the contract must have a lawful purpose; the terms of the contract must be reasonably certain and clear; and the contract must be in a form permitted by law. Contract Formation addresses the process leading to award of a contract. It involves a wide range of activities from acquisition planning, solicitation development, source selection planning and execution, evaluation of proposals and past performance, and ultimate identification of a vendor(s) most likely to deliver in a superior fashion. The role of the Procurement Manager is to plan, execute, and finalize purchasing and procurement strategies. This includes acquiring resources within budget and facilitating communication between the enterprise and its providers in order to deliver products and services according to plan. The Procurement Manager will also define the objectives of products and services in order to oversee quality control throughout their lifecycles. Defense Acquisition University. (n.d.). Retrieved from

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