Wk4Assgn_Hooper_L

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Fort Valley State University *

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2001

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Law

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Apr 3, 2024

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docx

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3

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Week 4 Assignment Template: Types of Business Law: Part 2: Contract Research Report Prepared by: Laquandra Hooper Date: March 24, 2024 Walden University
Report to Address the Scenario Introduction Sue’s negligence of failing to include payment terms and conditions in her contract with Kate is what is at the forefront of needing to be addressed. Sue’s negligence resulted in a vague contract with no additional detail being that it involved paying on a specific dollar amount, but it did not detail a certain payment method. This report will outline the risks that Sue may be facing by not specifying the payment terms within the contract. Furthermore, there will be recommendations outlined for the best ways to correct the situation if possible and to offer any conclusions. Cautions for Contract Terms Sue engaged in a contract with Kate that was very unclear and vague in nature. The contract did not include any key terminology that was necessary in defining the terms of the contract. The contract between the two ladies was based on a specific dollar amount, however, it was not stated within the contract. Being that there was no clarity as it relates to the currency, then that itself poses risks to the contract. Grant et al. (2014) says that a contract can be termed as an operational manual that attains a specific purpose, and if the words are not clear then the intended purpose won’t be accomplished. This could lead to a misinterpretation of the contract by one party, and by Sue not specifying the payment method, she is liable to be paid in a manner that is not convenient for her. In this sense, Kate could also pay Sue in a currency that she does not want which could result in a lower profit. This could also lead to further complications for both her and Kate. A conflict could arise between the two women that could result in either of them seeking legal interpretation. Recommendations Sue and Kate should review the payment terms of the contract and have it completed before the engagement begins. This will also allow the women the opportunity to discuss what payment method would be the most convenient, the value of the contract, and the currency in which the payment is. Writing is also an alternative to specifying the terms of the contract. This will help the ladies be able to outline their expectations for one another and the requirements as far as payments. Furthermore, if Sue and Kate cannot correct the situation based on the two alternatives, then they can also seek legal advice. Conclusion In Sue failing to properly and clearly outline the payment terms in her contract with Kate, as stated previously this made the contract very vague. This caused the development of many interpretations and options as far as Kate is concerned. The dangers associated with the contract in its current state is that it could cause disputes between the ladies, lead to litigation, and impact both operational and financial outcomes. However, there is still the opportunity for Sue and Kate to revisit and clarify some missing terms from the contract in order to make it more clear. Page 2 of 3
References Grant, S., Kline, J. J., & Quiggin, J. (2014). A matter of interpretation: Ambiguous contracts and liquidated damages. Games and Economic Behavior 85 , pp. 180-187. https://www.sciencedirect.com/science/article/pii/S0899825614000323?via%3Dihub Page 3 of 3
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