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Ad hoc: Definition, Example and Related Terms

What is a(n) Ad hoc ?

The term 'Ad hoc' is a Latin phrase that can be translated to mean 'for this' in English. This term is used in different fields like business, law, and technology, and it generally means something that is created or done for a particular purpose, as necessary, or as needed, without any prior planning or preparation. It's like coming up with a solution or idea on the spot to deal with a specific problem or situation.

In the world of commercial contracts, 'ad hoc' often refers to decisions, actions, or arrangements that are made specifically for a certain situation or contract, and aren't meant to be used as a general rule or standard. For instance, a company might enter into an 'ad hoc' contract with a supplier to get a specific product or service that isn't part of their regular operations. Or, a contracts manager might negotiate 'ad hoc' terms or conditions to address unique issues or needs in a contract.

While 'ad hoc' solutions can be very helpful in dealing with unexpected or unique situations, they can also have downsides. For example, because they're not planned or prepared in advance, they can sometimes be less effective or efficient than standard procedures. And because they're not meant to be used as a general rule, they can lead to inconsistency or confusion if used too often.

Despite these potential challenges, being able to create and manage 'ad hoc' contracts can be a valuable skill for a contracts manager. It can allow them to be more flexible and responsive in their work, and to better meet the specific needs of their business or clients.

Example(s)

  • Scenario Description
    A company needs a large quantity of a specific material for a one-time project. The company might enter into an 'ad hoc' contract with a supplier to get the material. This contract is created specifically for this project, and it doesn't mean that the company will regularly buy this material from the supplier in the future.
    A contracts manager is negotiating a contract with a new client who has unique needs or requirements. The contracts manager might negotiate 'ad hoc' terms or conditions to meet these needs. These terms are not standard and are created specifically for this contract with this client. They won't necessarily be used in other contracts with other clients.

Related terms