Explore BrainMass

Business Law: Drafting a Contract

Candice Harley owns a craft store. On a recent buying trip to Miranda, she located a vendor who manufactures bat houses that have been carved from a single piece of wood. The woman who makes these bat houses is named Rachelle Vendor. Candice believes that she could probably sell 10 or 20 of these bat houses per week. She negotiates a purchase price of $9 for each bat house. Rachelle has some conditions that she would like to insert into their written contract. She wants a provision that states that she has the right to terminate the contract should the lumber that she uses be declared illegal, or if the price of his lumber increases by more than 20%. Also should there be a dispute, she wants some form of 3rd party meditation. She also wants any court action to be based on the laws of Massachusetts. Rachelle has recently heard that the Italian wood that she uses for her bat houses has recently been placed on the Endangered Species list. She wants to make sure, should the wood not be available, that she will have a remedy for any breach that Candice may claim

Candice would like to receive 200 bat houses within sixty days of the contract date.

She would then like to receive 100 bat houses by the first day of each succeeding month, until a total of 1000 bat houses have been delivered. She will make payment by a certified check within 10 days of delivery. Candice is concerned about the quality of the bat houses and wishes to insert a contract provision that allows her to reject specific bat houses if she feels that some of them do not meet her specifications. Rachelle and Candice have worked out an overall list of specifications, which will be attached to the contract. You do not need to create this list of specifications, but you do need to refer to it in the contract itself.

Draft a contract using standard contract form that clearly establishes the agreement between Rachelle and Candice Include all their various contract conditions and any other issues that should be covered.

Solution Preview

I have outlined a contract here. Please add any pertinent details and correct any issues that should be noted within the contract.

This contract between Candice Harley (known as buyer) and Rachelle Vendor (known as seller) is entered into on the 25th day of September, 2010. The contract and any court actions are based on the laws of the State of Massachusetts, where the seller has established a business.

In consideration for bat houses made from a singular piece of wood, found only in limited quantities in Italy, the buyer agrees to pay nine dollars ($9.00) per house received in the required ...

Solution Summary

The solution drafts a contract for bat houses in the given scenario.