ABSTRACT
This chapter discusses offering contracts of the integrating business management processes. The role of purchasing manager is to: identify potential suppliers who are already enlisted in the ASL and deliver a unique product or service regularly, to jointly with the Plant Manager negotiate the terms of contract, and to arrange a visit to the supplier’s facility. A written contract usually consists of a standard from or agreement or a letter confirming the agreement. Verbal contracts such as those involved in emergency situation limit the financial considerations and rely on the good faith of all the parties involved. Essential elements of a contract are an offer of a product or service, acceptance of the offer, legal relationship and a financial consideration. Contracts can include, but are not limited to, these items: details of the parties including sub-contracting arrangements, validity period of the contract, definitions of key terms in the contract, description of goods and services to be received by ABCCL, etc.
