What is indemnification in a contract?

What is indemnification in a contract?

An indemnification is a contractual obligation by one party (indemnitor) to pay or compensate for the losses, damages or liabilities incurred by another party to the contract (indemnitee) or by a third party.

Can severable services be incrementally funded?

Contracts for non-severable services cannot be incrementally funded. The non-severable service must meet the bona fide need rule and be fully funded at the time of award.

Can you incrementally fund a time and materials contract?

Labor-hour or time-and-materials orders may be incrementally funded.

Can you incrementally fund a fixed price contract?

Incremental funding for fixed-priced contracts A fixed-price contract (FAR Subpart may be incrementally funded only if its for: Services that do not exceed one year in length and uses funds available (unexpired) as of the date the funds are obligated.

What is the bona fide needs rule?

The bona fide needs rule is a rule of appropriations law. It mandates that a fiscal year’s appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made.

What are the three types of restrictions on funds?

Appropriated funds are subject to three basic fiscal constraints: time, purpose, and amount.

What is the misappropriation act?

Misappropriation is the intentional and illegal use of funds for another use or other unauthorized purpose than its intended purpose. (31 USC, Section 1301) requires that funds appropriated by Congress be used only of the programs and purposes for which the appropriation was made.

What is an anti Deficiency Act violation?

The Antideficiency Act prohibits federal employees from. making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law.

What are the three phases of appropriation life cycle?

Each appropriation category has three distinct periods during its lifecycle: current period, expired period, and cancelled period.

Can you correct a purpose violation?

The use of the wrong appropriation (purpose) can be corrected if the proper funds (appropriation, year, and amount) were available at the time of the erroneous obligation, available during the entire period from the time of obligation until the time of correction, and available at the time of correction.

What is the necessary expense rule?

Under what is known as the “necessary-expense doctrine,” a federal agency may use appropriated funds for any expenses that are reasonably related to the accomplishment of the purposes stated in the appropriation. In general, agencies enjoy considerable discretion in deciding which costs are necessary.

What is the purpose statute?

The “Purpose Statute” requires agencies to apply appropriations only to the objects for which the appropriations were made, except as otherwise provided by law.

What can O&M funds be used for?

O&M appropriations are used to finance the following efforts: Operation and maintenance. Training, organization, and administration. Repair of facilities and equipment.

What is severable vs non severable?

(a) “Severable services” means services that are continuing and ongoing in nature—such as help-desk support, maintenance, or janitorial services—for which benefit is received each time the service is rendered. Contracts for goods or non-severable services are not similarly limited.

What does severable mean in law?

In law, severability (sometimes known as salvatorius, from Latin) refers to a provision in a contract or piece of legislation which states that if some of the terms are held to be illegal or otherwise unenforceable, the remainder should still apply.

Are severability clauses necessary?

The severability clause helps parties determine and then address the needs of all parties in different likely scenarios. For example, the non-compete clause of a contract of sale of a business may be invalidated by a court. The non-compete clause may also be essential to the nature of the transaction.

When can a contract be void?

A contract may be deemed void should the terms require one or both parties to participate in an illegal act, or if a party becomes incapable of meeting the terms. Alternatively, a contract is voidable when one or both parties were not legally capable of entering into the agreement, such as when one party is a minor.

Can a contract have two governing laws?

Parties are free to choose either one or multiple applicable legal systems for their contract. They could also choose different laws for different aspects of the contract. If parties do not specify the governing law, the courts will decide it for them.

Can a contract override state law?

Yes, contracts can preempt some aspects of state law. Contracts essentially create laws between the parties to the contract. Most of the state laws regarding contracts are “default” rules, that is, if the contract does not mention something…

Can a judge overrule a contract?

So, long story short, judges really don’t overturn contracts. That’s why we advise our clients to take negotiations seriously, and only sign an agreement when they’re absolutely sure that they can abide by its terms. Read it, understand it, ask questions about it—do all of those things BEFORE you consider signing it.

What law applies to a contract?

Contracts are usually governed and enforced by the laws in the state where the agreement was made. Depending upon the subject matter of the agreement (i.e. sale of goods, property lease), a contract may be governed by one of two types of state law: The Common Law.

Can a contract supersede law?

Answering your question, but disregarding your example, the answer is: YES, contracts can supersede the law. There are two ways: First, parties to a contract enjoy usually the freedom to contract. The agreement may deviate from the rule the law would impose, if there would be no such agreement.