1. Review the assigned case as below, sales contract model, and identify/determine specific factors that you (as a Buyer) would consider important in a contract and that would deal with any of your business concerns.
2. Identify 5 factors that need to be discussed, and then develop two alternatives for the 5 factors you identified.

Case Details:

You are a member of a purchasing team working at X-Digital Co and you are planning to purchase some electronic boards based on the following information.

No	Product Description	Max. Acceptable price/ delivered at our place
1	Electronic Board model 1001	CAD$ 187
2	Electronic Board model 1002	CAD$ 202

• Your factory is in Regina, and your supplier is in Shanghai China. The estimated transit time for ground shipment would be 40 days. The air freight and cargo insurance charge for each board would be CAD $ 7.5.
• You need 52200 pcs of model 1001 and 85800 pcs of model 1002 per year with a fixed monthly consumption rate.
• Preferred Payment condition: Open account , 60 days net from date of delivery.
• Your stock inventory just covers three weeks of consumption, and you need to select a supplier very fast, though you have another potential supplier in BC with average 17% higher prices.
• Any delay in delivery will cause a shutdown and you expect CAD $ 80.000 for each day of delay in delivery of each shipment.
• You need to inspect the products in your production line and the return policy shall cover 2 months free replacement at the costs of the Seller. You also need quality warranty for two years or 4000 working hours.
• You need the product to be packed in cardboard boxes and then palletized.

Answer rating: 100% (QA)

Factors to consider in the sales contract Price and Payment Terms Factor The maximum acceptable price delivered at our place Alternative 1 Negotiate f... View the full answer