Sadly, it is time to close this chapter on your transaction with Mr. Barker. All of your hard work of negotiating and settling the terms of the agreement are in the final stage.For this last part of t
Business Law I
Course Project
Contract Issues and Worksheet
Below you will find a chart that is missing information. By filling in this chart you are starting to build the foundation for your written contract. Fill in the missing information as complete as possible (for items such as addresses and description of the items, you can create that information).
| Party names | Mr Fredrick ( seller) and Mr Bob (buyer). |
| Date of the contract formation | 17th of October 2018 |
| Addresses of the parties | Seller address: MR Fredrick 1234 AVE ASHFORD APT 1A SAN JUAN PR 00907–1021 The UNITED STATES OF AMERICA. Buyer Address: MR. Bob GENERAL DELIVERY DULUTH MN 55811–9999 UNITED STATES OF AMERICA |
| Description of the items being purchased | Toys are the items that are being purchased. The buyer has shops in which he sells kids and baby products in the wholesale. After observing for a period of time, he has observed that his customers have high preferences for toys and is looking for specifically designed toys much more differentiated than the one that is in the market and Fredrick is the seller who has the toys which are baby dolls, puppets, nesting toys, soft stuffed animals and push and pull toys. |
| Date of delivery of the items | After the formation of the contract, toys are expected to be delivered in three schedules that are on the 20th of October, 27th of October and 10th of November of the year 2018. |
| Date and expected form of payment | Payment is to be made on cash that is upon delivery of the items. Therefore, payment will be made on the 20th of October, 27th of October and 10th of November. |
| Agreed upon price | Upon the formation of the contract, the parties agreed that the price to be paid for the contract is $710. |
Other than the items listed above in the chart, what else needs to be present for this to be a valid, written contract?
Other than the items listed in the above chart, the contract agreement ought to consist of the following; required insurance and indemnity provisions, damage or penalty provisions which highlight what to happen if the items delivered not in good condition or if items delivery follow to follow the specified delivery schedule stated in the contract document or the buyers defaults to make payments as stated in the schedule, negotiations or renewal options to the contract, procedure of resolving the disputes, a witness before whom the parties drew their agreement and lastly, termination conditions of the contract.
Why does this contract need to be in writing?
This contract should be put in writing for various reasons. One, it should be put in writing to ensure the contract is enforceable. Secondly, it should be put in writing to serve as proof of an underlying agreement and prevent any form of fraudulent activity. Third, this contract should be put on writing to ensure both parties clearly understand their obligations and use the written document to serve as reference and reminder of the terms and conditions undersigned in the document. Lastly, it is important that the above contract is in writing since, in case of disagreement between the parties, the jury will only rely upon the written agreement to determine the right course of action to be taken.
Reflecting upon the negotiation at the restaurant, what would you have done differently? Would you have offered the lower price of $700.00? Why or why not?
As the seller, I believe that I could have broken negotiation into parts to create a strong basis of the negotiation that would be progressive. This means that the seller should be aware of the current market prices of the similar products, have a clear understanding of the costs of the production and other related costs that would be key in determining the price of his products. Also, the seller ought not to sell his product on the pressure but rather need to have a sober mind and create an ideal environment that does not promote hardline positions but rather focus on a win-win situation.
I would have offered the lower price of $700.00 because with this price I would still be covering the production costs and other cost related to the supply and distribution of the items to the seller.
