Parol Evidence Rule
A rule of evidence that excludes the use of non-contractual materials (for example, conversations, prior correspondence) in determining the meaning and legal effect of words in a written contract. The rule is relevant to matters being heard in a court of law. There are exceptions to the rule.
Partial Possession
A circumstance whereby a party (eg the Principal) retains or assumes rights to possess or occupy a portion of land or premises the subject of an agreement.
Partnering
See Alliancing.
Partnership
Two or more persons carrying on a business in common with a view to sharing profits. Generally, partners are jointly and severally liable for debts and obligations incurred in the course of the partnership business. A partnership has no legal personality separate from its members.
Party Costs
Costs incurred by a party to litigation in enforcing or defending their rights.
Patent Defect
A defect that exists in project Works that are able to be ascertained or identified by making reasonable enquiries or investigations at the time of Practical Completion. (See Defect and Latent Defect)
Pay When Paid
A provision of a contract that makes the liability to pay money owing, or the due date for payment of money owing, contingent or dependent on the payment by a third party.
Payment Claim
A claim made by a party (eg Contractor) for a payment due under an agreement (eg Progress Payment or Final Payment). The term 'payment claim' has a specific meaning under the Security of Payment Legislation.
Payment Schedule
A written response to a payment claim identifying the amount of the payment (if any) that the respondent proposes to make. It may include the calculations used to arrive at the amount of payment to be made, and may also indicate why that amount is less than the amount claimed. The term 'payment schedule' has a specific meaning under the Security of Payment Legislation.
PC-1 (1998) (Property Council of Australia project contract)
A standard form of contract developed on behalf of the Property Council of Australia that is intended for use in non-residential building, engineering, construction and staging of projects. PC-1 purports to address the criteria of project financiers in particular.