International standard forms of tender

Abstract

The essence of building contracts, like other contracts is agreement. Any form of agreement is arrived at when both parties agree as to the terms which are to form the contract. In the ordinary building contract the consideration given by the employer is the price paid or the promise to pay, whilst the contractor is to carry out the works as agreed. There is consideration where "an act or forbearance of the one party or the promise thereof is the price for which the promise of the other is bought". Both parties should be capable to enter into the agreement and any other formalities required by law should be complied with.