Contract and procurement fraud
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CONTRACT AND PROCUREMENT FRAUD The procurement system refers to those processes, procedures, and entities involved in the purchase of goods and services by public or private entities. And because the primary objective of an effective procurement policy is to achieve the best value of money, it is important that procurement processes avoid incidences of fraud. This section will provide some insight into fraud in the procurement process, focusing on the following topics: Basics of contract law Methods of acquiring goods or services Phases in the contracting process Types of procurement fraud schemes Methods of preventing and detecting contract and procurement fraud Basics of Contract Law Entities purchase goods and services through the medium of a contract; therefore, it is helpful to understand the elements of a contract. Legal systems, however, deal with some of the basics of contract law differently. In fact, there are differences in the way that common law and civil legal systems deal with contract law. Despite such differences, this discussion provides a general overview of the basics of contract law. Elements of a Contract A contract is a mutual oral or written agreement under which two or more parties have undertaken an obligation to render performance. To be enforceable, a contract generally must contain the following elements: Lawful subject matter or objective Competent parties Intent to be legally bound Agreement Form permitted by law Lawful Subject Matter or Objective To be enforceable, the subject of the contract must be lawful and not be contrary to law or public policy. Download 0.62 Mb. Share with your friends:
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