Contract drafting
Question


Solution
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.



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