Contract drafting

Section A: Renovation Contract

This contract is entered into between Jerry the owner of the house and Kramer of Cosmo Contracting Inc.

Background

Jerry wants to renovate his kitchen within the two months after entering a contract with his friend Kramer who works for Cosmo Contracting Inc. He wishes to obtain hardware kitchen like knobs, drawer pulls, and cabinets from Vandelay Industries because his friend George is the president of the manufacturing industry. The owner of the house wants the cost of the entire renovation to utmost $20,000. Hence, the two parties agree as follows,

Purchase of Renovation Materials

Kramer, the renovator agrees to obtain renovation materials from Vandelay Industries as suggested by the owner of the house. He also wants to invoice Jerry, the house owner for material and time while the project is under renovation till completion.

Indemnification and Assumptions

The two parties agreed to hold harmless and indemnify each other from all forms of loss, liability, claims, and damages inclusive of legal fees and expenses incurred. None of the parties are liable for any incidental, special, or consequential loss, whether the claim relates to negligence, breach of contract or whether the party was notified prior to the renovation process. Jerry assumes that manufacturer will deliver renovation materials that meet his expectations. He also assumes that Kramer has experience in renovating kitchen hardware. Furthermore, it is assumed that the kitchen hardware will not require additional renovation services.

Terms of Payment and Other Considerations

After signing the contract, Jerry agrees to honor invoices from Kramer, the renovator; however, he plans to retain 10 percent of the agreed amount till the renovator wind up renovating the kitchen hardware. The house owner and renovator are aware that the renovation materials to be ordered from Vandelay Industries are of good condition and genuine. Kramer agree to complete the renovation process within two months as suggested by Jerry, the house owner. Jerry agrees to make additional payments in case the cost of renovation materials exceed the budget drafted initially

Legal and Binding Agreement

The two parties approve their authority to enter into this mutual agreement. They also approve that the agreement is binding and legal. In case a breach of contract will be witnessed, Kramer, the renovator agree that he will incur the loss in case the manufacturer delivers renovation materials that does not meet the requirements set by the house honor.

Governing Law and Jurisdiction

The two parties approve that the contract is overseen by the county or state in which the renovation process is administered. Both parties agreed that their operations are conducted under the uniform commercial code since the code spells out the guidelines to the purchase and delivery of goods and services between the source and the buyer.

Entire Contract

The two parties agree and consider that this contract denotes a full representation of the mutual agreement between them. In case one or both parties wish to improve, change, or add any terms stipulated in this contract; therefore, they must do so in writing and subsequently signed by the two parties engaged in.

Consequently, both parties concur with the terms and conditions stipulated in the contract and the signatures below act as a seal.

Jerry (House Owner)

Name: ___________

Date: __________

Signed: __________

Kramer (Renovator)

Name: ___________

Date: __________

Signed: __________

Section B: Contractual Legal issues

During the renovation process, the manufacturer, Vandelay Industries became bankrupt, and Kramer failed to obtain a cabinet and two drawer pulls from them. Kramer had found a similar cabinet from Newman Enterprises; however, this translates to an issue of mis complaint referrals and deals because the company might be having a financial interest contrary to Jerry’s expectations. On the other hand, Kramer had caused a damages worth $50,000 which is beyond his salary for the entire renovation meaning that material loss another contractual issue that he is likely to face. In relation to that, the binding agreement states that both parties are liable to the loss and damages caused in either way.