Contract Law Questions
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Contract Law Questions
Who are the parties to this contract?
There are three parties to this contract and they are Aurora
Clock Company, LLC, an Arizona Limited Liability Corporation, and ABC, Corp., a California
Corporation.
What law, common law or UCC, applies to this contract? How do you know?
The payment law is a common law since in section 8 of the contract there is the mention that the buyer shall pay highest permissible interest by law on late payments. The law here is binding and it is a common law. The other law that applies to this contract are the business regulation laws in that the buyer shall comply with them in terms of licenses, regulations among others.
What are the essential term(s), as defined by the applicable law, of the contract?
Essential terms refer to the acceptance of the contract, legal capacity of the buyer, consideration among others. From the contract it is visible that the essential terms are all present since the parties have agreed to work together.
Does the Statute of Frauds apply to this transaction? Why or why not?
In this business the statute of frauds applies in this transaction and it it binding since the business involved in the work of doing business are big businesses and they are registered which means they cannot just operate without official agreement.
What is the consideration of each party?
The consideration is the full acceptance of the contract and when the parties to a consideration there is no going back and they have to work together since consideration means acceptance to work together and this can even be charged in a court of law in case on of the members wants to go against the contract
How is each party discharged from this contract?
The seller may terminate the agreement with a written report for the reasons of termination. The reasons might include; refusal of the buyer to pay for orders delivered, becomes solvent of files a petition of bankruptcy.
Can this contract be assigned to a party that is not a part of the contract?
The contract remains binding to the parties only and cannot be assigned to any other party who is not part of the contract at the beginning.
What defenses are included in the contract?
There are many defenses in the contract in that for example title and risk of loss passes to buyer upon delivery of the products and this is a defense against the seller such that the seller will not be blamed for the products of the buyer which are not in good order when it is the buyer who has tampered with them.
How will disputes be resolved under this contract? Is the dispute resolution method binding?
The method of dispute management is by first coming together as partners and trying to see ways to do away with the problems which afflict the business relationship. This is done through written communication which unless they find a solution within 6 months can be taken to the court of law for solution to be found.
What jurisdiction governs this contract?
The business contract is governed by courts of law in that when there is a problem the members can visit any court of justice and seek clarity on the different issues which they face along their business relationship.
How do the parties agree to communicate? Why would this term be included in the contract?
The parties agree to communicate through written communication. This is a very important part of the business since when the parties communicate in a heathy manner and the communications are all tracked, it gets easier to solve issues.
What remedies are available under this contract?
One of the remedies for a breach in contract is that when a person or a business tries to breach the contract, they will be liable to payment of any injury or hurt caused tot the partnership.
Is there an exculpatory clause in the contract?
Even though the clause does not have an exculpatory clause, the three parties trust each other and that no one will leave another person to be fully reliable for damage done to the business.
