Which of the following are reasons why a buying organisation adopts a model contract? 1. Extremely advantageous terms for buyer 2. Correct legal…

A buying organisation adopts a model contract primarily for two reasons. Firstly, these contracts are typically drafted by legal experts or industry bodies, ensuring they contain correct and legally robust terminology, which minimises ambiguity and potential disputes (2). Secondly, model contracts are often developed for specific industries (e.g., NEC for construction, IChemE for process engineering). This ensures the terms, risk allocation, and procedures are relevant and appropriate for the specific context of the work being procured, which a generic contract might fail to address (4). They provide a balanced and well-understood starting point for both parties.

1. Extremely advantageous terms for buyer: This describes a buyer's bespoke standard terms and conditions, which are intentionally drafted to favour the buyer, not a model contract which usually aims for a more balanced risk allocation.

3. Supplier cannot make variation to the model form: This is incorrect. Model contracts serve as a template or starting point for negotiation; they are almost always amended by the parties to suit the specific requirements of the transaction.

1. Chartered Institute of Procurement & Supply. (2018). Commercial Contracting (L4M3). CIPS Profex Publishing. Chapter 4

Section on 'Standard and model form contracts'

pp. 85-87. This section explains that model forms are created by professional bodies for specific industries and are drafted by experts to be legally sound

providing a fair basis for a contract.

2. Lowe

D. (2016). Commercial Management: theory and practice. Wiley-Blackwell. Chapter 7

'Standard Forms of Contract'

pp. 151-153. This text discusses how standard/model forms (like JCT or NEC) are industry-specific and provide a framework of established

legally tested clauses

reducing the need to 'reinvent the wheel' and ensuring correct legal language.

3. Uff

J. (2013). Construction Law: Law and Practice Relating to the Construction Industry. 11th ed. Sweet & Maxwell. Chapter 5

'Standard Forms of Contract'

para 5.001-5.005. This legal textbook highlights that the primary advantages of standard model forms are their familiarity within an industry and the careful drafting by experts to reflect industry practices and legal requirements. It also confirms they are subject to amendment.