Term Sheet assignment W24

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Seneca College *

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850

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Statistics

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Apr 3, 2024

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docx

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IBS 850 - Assignment: Negotiating and Building a Term Sheet DUE: Week 10 before class - ZXX: March 19 th ; ZWW: March 20th LEARNING OBJECTIVE: To apply your understanding of international sales contracts and key contract clauses (learned in Chapters 6 & 7 ) in planning for an international sales transaction. VALUE: This assignment is worth 15% of your final grade and is marked out of 25. HOW IT WORKS: 1. This is an assignment to be done in pairs. Please choose 1 partner to work with and email me to let me know who you are working with by March 5 th during class (ZXX) or March 6 th during class (ZWW). 2. Each pair will submit 1 assignment. You must work on the assignment together. One partner from each pair will submit the assignment for the pair (in a Word document). You will each be assigned the same mark for Part A, but your mark for Part B may be different than your partner’s. a. Part A – contract terms – use the attached template (20 marks) b. Part B – individual reflection (for each partner) (5 marks). i. NOTE: that you will only be marked on your own reflection (not your partner’s). 3. Each individual will choose a role (a different role for each partner). You will each play the role of an executive for one of these companies: a. Fresh Flower Farms Corp (“FFF”) – a business based in Ecuador that grows and exports many types of fresh-cut flowers. FFF’s main products are roses, chrysanthemums and lilies, and it has a reputation for high-quality, long-lasting blooms. FFF is hoping to increase its customer base in Canada and a deal with Roses Forever would help it do this. It is generally concerned with ensuring prompt payment from its customers. b. Roses Forever Inc. (“RF”) is a Canadian online retailer of fresh floral bouquets. RF sells and delivers bouquets of roses to many areas of Canada. RF is hoping to replace one of its major suppliers since lately their products has not been as fresh as RF requires. RF is interested in negotiating a long-term supply contract with FFF. As one of Canada’s largest retailers of cut flowers, it expects to receive a bulk discount from its suppliers. As well, it needs to ensure adequate supply of roses for Valentines Day and Mothers’ Day, two holidays where flowers are traditionally given in Canada. c. For some context, pricing for roses varies with the variety, stem length and time of year. For example, one seller from Ecuador prices their 50 cm white roses at Cdn $1.35 for 300 stems, bright pink roses at Cdn $1.45 for 300 stems, and red roses at Cdn $1.35 for 300 stems (https://www.ecuadordirectroses.com/category/fresh-cut-roses). 4. ASSIGNMENT : You will negotiate a term sheet for a contract for the sale of fresh roses from Fresh Flower Supplies to Roses Forever. o Prepare on your own (in advance) for the negotiation of your contract by considering the elements and terms that you would like to have in your contract. o Then, meet with your partner (the executive of the other company) to negotiate and create a term sheet together for the sale transaction.

 PART A – Term Sheet - Using the attached template , list and explain ten (10) elements (or terms) that you have agreed to include in your term sheet (and ultimately in the final contract) with the other company, taking into account the concerns of each business as outlined.  For each term, provide details of the term (what you have agreed to, specifically) and the reason for including that term as you have negotiated it. Be as specific as possible. (2 marks for each term).  For example, you may want to address payment terms, currency, shipping and delivery arrangements, and dispute resolution. You may improvise or add facts if needed.  Do not include the example provided in the template (quality/freshness) as one of your 10 terms.  Do not include terms that do not require any negotiation, like the names and addresses of the parties .  PART B – Reflection - After you have created the term sheet with your partner, answer the reflection questions in Part B on your own . You will be marked individually on this portion of the assignment. General Assignment Notes:  Use your own words.  No legal language is required.  If you quote from the textbook, you must cite properly (using in-text citations)  You do not need any resources other than the textbook and your class notes. However, if you do use outside sources, you must cite property (using in-text citations). Failure to do so will result in loss of marks.  You are expected to follow Seneca’s Academic Integrity Policy.  Be sure you include the names of both partners (and their roles) on the assignment.  Late assignments will be subject to a penalty of 10% per day. [use the assignment template on the next page to submit your assignment]

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