When entering into a contract it is obviously important for a Contracts Manager to be aware of and understand the express terms incorporated into the contract of employment, as failure to comply with these terms may lead to a claim for Breach of contract resulting in the award of damages. This is especially important for those who work in contract management function in an organization.

However it is also important for the Contracts Manager to be aware that other terms may exist within the contract of which he is totally unaware, i.e., implied terms. For example, if a dispute arises in relation to a contract, one of the parties may claim that although a term was not expressly written into the contract its existence is nevertheless implied and if the dispute is taken to the courts a decision will have to be made as to whether such a term was implied in the agreement.

Contract Managers employed in contract management, are sometimes asked by their employers to provide advice and actively engage in the selection and appointment of contractors and in such cases it is important to be aware of what liabilities may be associated with the advice provided.