Logistics Essay Example | Topics and Well Written Essays - 500 words - 1

Logistics - Essay Example Redetermination barely allows the buyer and seller to reach a firm price prior to production. Supplier’s incentive is primly on cost elements to the detriment of quality interest expressed by the client (Ward 2008).Should the supplier manage to demonstrate actual cost savings, usually when it involves high unit costs, the resultant cost savings from the initial cost targets is shared between the buyer and supplier based on predetermined rate. The fixed-price Contract with Incentives is considered when the two parties won’t agree on an equitable price (Federal Register 1977). Chapter 14 brings out the advantages of fixed-price contracts with incentives over those with redetermination making it relevant to the topic. When two or more parties get together to do business, they form a contract, some sort of a binding legal agreement. Now the contract law is a body of law that governs these agreements whether written or oral. On the other hand, commercial law is a body of law that refers to how the business parties or firms get into a contract with one another and executes the contract. Should any problem arise in the process, the commercial law ensures its remedy. The commercial law is majorly tied to laws regarding agency and contracts. Finally, the Uniform Commercial Code (UCC) is not exactly applicable to a business transaction like the other two but rather it comes in at a later stage. The UCC is a model statute used to resolve contract disputes that arise from the sale of goods (LaMance 2013).