Writing Business Contracts

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Read/watch all assigned materials listed for the week in Course Content. Cite to these materials with in-text citations in all responses to Learning Activities.

Include a Reference List for in-text citations.

Use only the assigned materials in writing your Learning Activities; do not use resources from the internet for this week’s assignments.

Assignment:

Contracts are essential for business, and will be an integral part of PI operations, so the owners now want to center their attention on contract law. Each of the owners have had experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts.

To reduce risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. For example, contracts with agents, such as employees and independent contractors, must define rights and responsibilities of the parties and the nature and scope of agents’ authority. Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should consider bonding.

They know that there are various types of contract agreements that are relevant to PI. For example, the company will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, the company will engage in sales contracts with other businesses, and sales contracts between businesses and consumers and clients. Furthermore, PI will use electronic contracts, or e-contracts, in conducting online business transactions.

Although the PI owners have all had experience with contracts, they understand the importance of having written standard form contract for the business. They also recognize that vague or incomplete contracts can create risks for the business. The PI owners have asked BCA to create some sample contracts that might be used in their new business.

You are tasked with creating sample draft contracts for PI. You, Pat, Gale and the PI owners will discuss the samples at the next meeting with goal of finalizing standard contracts for use in PI.

As the first contract proposal, draft a contract between PI and its painter-employee. The contract should address, in part, the following terms:

  • duties to be performed by painter-employee
  • pay for painter-employee
  • work hours
  • terms of payment for overtime or holiday work, if any
  • sick leave
  • vacation
  • training for painter-employee, if any
  • length of contract
  • bonding for painter-employee
  • periodic performance evaluation and how it will be conducted
  • termination of contract.i.e., notice for termination, etc.

The contract should include all terms necessary to be a valid, enforceable contract, but should be simple, straightforward and address only the terms listed above.

Readings:

Saylor: Business Law and Legal Environment

Read only the assigned chapters on the embedded links below:

Electronic Contracts (1.59 mins)

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