Last week you were introduced to the Course Project for this course.
Now that the negotiations between you and Mr. Barker are done, you are
tasked with the job of drafting the contract that will finalize this
deal. For this week, you will get to practice your contract drafting
skills by creating a rough draft of a contract for this toy transaction.
Based on the information from the worksheet from last week, you are
to build a formal, written contract. You will need to include:
- Parties – The names and addresses of all the contracting parties
should be clearly stated. You can make these up for this contract.
- Dates – List the date that the contract is being entered into.
- Definitions and Interpretations – If there are any defined terms
in the contract, this section should provide specific and clear
- Payment Provisions – The exact price to be paid for the goods or
services provided and the date or dates for payment to be made should be
clearly set out. Remember, you want cash and not a check or credit card
for this contract.
- A specific description of the set of toys should be stated in this section.
- Term of contract – The length of the contract should be stated and
it should also be noted whether there are any options to continue the
contract. This is a contract for this specific instance and should be
noted in the contract.
- Limitation of liability – This section caps the liability of
either party to the contract. For example, Mr. Barker has inspected the
set of toys and accepts them “as is.” If he finds a defect with them at a
later date, you have no further responsibility to him.
- Signature Lines – Provide proper signature and date lines at the conclusion of the contract for both parties.
Besides including the above list and the standard elements of a
contract, you are to also include the following clauses into your
formal, written contract between you and Mr. Barker:
Act of God/ Force Majeure Clause in case the toys are destroyed by a natural disaster.