Construction Law

Page 47 CHAPTER 2 CONTRACT FORMATION Page 48 I ntroduction 2.01 A contract may be described as an agreement which by law confers and imposes rights and obligations upon the parties to it. 1 The flipside of every contractual obligation is the right of the other party to call for performance of the obligation. 2 A contract may be one under which only one party owes obligations to the other party. A contract of guarantee is such a contract. But where, as is usually the Page 49 case in construction and engineering projects, two or more parties promise to each other to do certain things, or to refrain from doing certain things, the contract is bilateral or synallagmatic. 3