2 Contracts Questions (Urgent!) Forum

[waterandparchedearth]

Hello all,

I am taking an open-book Contracts make up exam tomorrow and I was hoping to get a few things clarified. These are really basic questions that I should know the answers to by now, but that I still just don't understand, so maybe someone from TLS can explain to me in very basic language? It would be greatly appreciated.

Option Contracts- I just need to understand what they are
General Contractors/Sub Contractors/Bids- I don't get any of this or the relation between them

If anyone would be willing to help me out, I'd really appreciate it. Thanks!

[pancakes3]

You've had so long to get your shit together. Asking this now is not a good look.

[run26.2]

A google search would answer both of these questions very quickly.

[waterandparchedearth]

I know this isn't an ideal situation. I've tried googling these things and just haven't understood the explanations I've found. People on TLS have been very helpful in the past in explaining things, so I figured it couldn't hurt to ask.

Also, again, I get that this isn't ideal and it doesn't make me look great, but no one is really aware of whatever circumstances have put me in my current situation, so I'd appreciate more constructive advice if anyone has it rather than criticism. I really can't change the situation now and whether or not it appears that way, I've worked very hard catching up in all my classes.

ETA: But if anyone is actually feeling charitable and would like to answer those questions for you, I could not even explain how much I'd appreciate it!

[girlrunning]

I Googled "Option contract" and the definition Google gives you is literally what you learn as a 1L. What is it that you don't understand about it?

An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Options contracts are often used in securities, commodities, and real estate transactions.

(From direct Google search)

[waterandparchedearth]

Thank you so much for posting that! It actually does make sense, I think I just must have looked it up elsewhere and been confused. Completely my mistake and fault, so I apologize. I still don't understand the general contractors/sub contractors/bid thing though, even though I just looked it up again to be sure. So if anyone knows about that and wouldn't mind explaining, I'd really appreciate it.

[run26.2]

An options contract is a contract that confers a right to do or not do something, that's the "option." A common example is an option contract to buy or sell stock. For instance, you might pay $5 for the option to buy a stock at $100 before a certain date. If the price of the stock went above $100 before that date, you would consider exercising your right to buy the stock. Another example is an option to extend a contract, which may occur in sports, employment, or in government contracts. In such a circumstance, a party to the contract may have the option to lengthen the duration of the contract on pre-determined terms.

Regarding your second question, contractors and sub-contractors generally come up in construction contexts (but can also be in other contexts, such as government contracts for various types of work). The general contractor (which may be a person or a company) oversees the project. The general contractor (GC) frequently finds and hires others to do certain portions of the work (for instance framing a house or doing the electrical work). The GC negotiates the scope and terms of the work to be performed with the person (or company) doing the work. Since these latter people or companies do not work directly for the person who owns the house in the example given above, but for the GC, they are called sub-contractors. A GC may evaluate multiple sub-contractors for any one job. The subs will submit bids, which lay out the terms on which they will complete the work (e.g., cost, time to completion, etc.). The homeowner may also request bids from multiple GCs.

[waterandparchedearth]

Thank you! That was extremely, extremely helpful. I really appreciate your help with this.