Contracts Creation Management
Contracts are a legally binding document between two or more agreeing parties. (Cheeseman, 2010) Contracts are put in place to protect each party from fraud and to fulfill the obligations made. It is necessary for businesses to effectively create and manage contracts so that each party fully outlines what is clearly agreed upon. In the simulation, the company Quick Takes Video Company is being introduced to the Non-Linear Pro equipment by their long term production executive Janet. She persuades them to try out some new editing equipment in order to improve the old system that has been in place. Quick Takes Video Company initiates a meeting with a sales person Jack from Non-Linear Pro to consider leasing the equipment for a month.
Upon this initial meeting, a contract formation was made when, a verbal agreement was set up that Quick Takes Video Company wanted to try out the equipment provided from Non-Linear Pro for a month. Non- Linear Pro verbally agreed to provide the equipment by leasing for a month. They left Janet to iron out the details with Jack the salesperson. Unbeknown to Quick Take Video Company a contract had been made, however, the details were not made clear, but a verbal agreement, a hand shake, and the two agreed to do business. According to Cheesman, this constitutes a bilateral agreement. A binding contract between the offerer, Non-Linear Pro, and the offeree, Quick Takes Video Company.(Cheeseman, 2010) However details not specified in the video provide information on the cost of the monthly lease, when equipment will be provided, support and training of staff, and the steps after the trial ends.
A clearly written contract between Non-Linear Pro and Quick Link Video Company should be made to define the offer, acceptance of the offer, and a valid legal consideration. The following contract is written as so.
CONTRACT FOR SERVICES
This Contract for Services is made between Quick Take Video Company and Non-Linear Pro.
The Parties Agree as follows:
SERVICES REQUIRED. Beginning on March 01, 2013, Non-Linear Pro will provide Quick Take Video Company the following services:
The use of Non-Linear Pro system for one month trial basis, in house training of Quick Takes Video employees and system support during one month trial basis.
PAYMENT. Subject to agreement Quick Takes Video will pay Non-Linear Pro, in the amount of $1500.00 upon executing this contract for one month trial lease. If Quick Take Video Company fails to pay for the services Non-Linear Pro has the option to treat nonpayment as a breach of contract, may cancel this Contract, and seek legal remedies..
PROPERTY AND OWNERSHIP. Any copyrightable work, data, inventions, publications, products, or other information developed by Non-Linear Pro in connection with the services will be the exclusive property of Quick Take Video Company. If any infringement were to occur, each party will alert the other, and a form of redress will be taken.
DISPUTE RESOLUTION. The parties shall seek to settle any dispute with connection from this contract by negotiation, meditation, or conciliation. Each party can elect to have an advocate or legal representative.
SIGNING OF WITNESS_______________ SIGNING OF PARTIES____________________
Cheeseman, H. R. (2010). Business Law. Legal Environment, Online Commerce, Business Ethics, and International Issues. (7th ed.). New York, New York: Pearson Education.
Contracts-Offer and Acceptance Video (transcript). (2013). Contract Creation and Management Simulation.