Assignment Course Learning Outcome (CLO 5) Objective:

Develop critical thinking skills as applied to business situations.

Instructions

Considering the concepts in Module 4, read the following hypothetical situation and draft a legally enforceable contract given the facts in the summary. Your project is to draft a legal contract with terms that both the buyer and the seller can agree to.

Scenario

You own a small business called "Fur-Ever Champion Show Dogs" and your beloved German Shepherd dog, Generous Offer, has just given birth to a litter of purebred puppies. You would like to sell the puppies for $2000 each. You know you need to have each buyer sign a contract so that there will be no misunderstandings in the future.

Mr. Snoopy Dogg wants to buy one of your puppies. Mr. Dogg eventually intends to show this dog in the American Kennel Club (AKC) Championship Show and wants your guarantee that the dog will do well and win prizes. He insists that he will not buy the puppy unless you can guarantee him that the puppy will win prizes.

Create a contract in which you sell one of the purebred puppies to Mr. Snoopy Dogg for $2000.

It is a brown, male dog, named "King of Contracts."

His litter registration number is 02500. His Sire is "Legal Star"; registration number 5544332. His Dame is "Generous Offer"; registration number 9977886.

Keys to Success with This Contract

You may use any sources you can find, including any sample contracts you might locate on the Internet -BUT- you must rewrite any sample or template that you use in your own words in drafting the contract and you do have to make the sure the contract is legal and enforceable - that it contains all the terms that both you and Mr. Dogg want.

Finding or creating the appropriate template is crucial to this assignment - it should pertain specifically to the sale of a purebred puppy that is expected to compete in AKC competitions.

This assignment requires that you address a seller's guarantees (which can be difficult), reducing the chances of dispute resolution, and to consider the care and treatment of the "King of Contracts."

Drafting a contract can be challenging regardless of the subject matter of the agreement. It is important to include a comprehensive list of the ideas and intentions for each party and consider all of the parties' interests to avoid any mistakes or misunderstandings. In turn, a well-drafted contract avoids disagreements leading to a breach of contract. Having to litigate or arbitrate over the interpretation of contractual terms or the intention of the contracting parties can be a time consuming and costly exercise, which should be avoided.

Keys to this contract assignment:

• The contract should clearly identify the parties, the details of the transaction (price to paid, information about the puppy, delivery, terms to to limit liability - guarantees, refund policy, etc.).
• It should provide for which law regulates the agreement and address dispute resolution.
• This contract should address any special conditions in the transaction - in this case - the care and treatment of the puppy, guidance on health, training, etc.
• Contracts must be enforceable, containing all required material and fundamental terms.
• Contract terms should be clear and unambiguous and relevant to the transaction.
• Contracts should be organized in a logical manner making it easy to follow.
• Contract should be written clearly, professionally, and with proper grammar, spelling, punctuation, and syntax.
• Provide for signature acknowledgment.
• Cite your sources or template (if used).

The key to success with this contract is to remember that parties can agree to any terms they want (as long as they are legal) and the buyer of this dog wants a guarantee that the dog will win prizes.

Source: Strategies for Success: A Resource for Faculty and Students Middlesex Community College, Bedford, MA