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 definitions.
- 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:
- A Mandated Alternative Dispute clause.
- Act of God/ Force Majeure Clause in case the toys are destroyed by a natural disaster.
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