CONTRACT PROJECT ASSIGNMENT Students, This assignment is designed to help you learn how to write a proper contract.

Here is the scenario: You are the owner of Supreme Packaging, Inc. Your business is located in Port Huron, MI. You sell customized packaging machines to businesses in the Port Huron area. One of your machines, model number ZZ249BUZZ, is particularly good at packaging marijuana in tamper proof opaque pouches that are also smell proof. Last week, you received an email inquiry from Charlie Sheener, a sole proprietor in Denver, Colorado (DBA Stoners R Cool) who wants to buy this machine, which retails for $25,000.00. Upon reviewing Charlies information, you discover that his business was established one year ago, and has a small number of customers. His credit rating is average, and he is only able to put a $2,000.00 down payment on the machine. You like his enthusiasm and drive, and he is well-connected in the Denver area which could lead to more business. You want to sell him the machine, but you also want to make sure that you are protected in this transaction in the event that Charlie defaults or his business files for bankruptcy. Charlie suggests paying in regular installments and is willing to pay a reasonable interest rate. Draft a sales contract for this transaction. USE THE CONTRACT TEMPLATE ON THE TIMELINE AS YOUR BASE DOCUMENT.

This template is a good start. However, some clauses need to be added, some removed, and some need to have the wording changed. Make sure you include all of the elements required for valid sales contract, and provide adequate protection to your company in the event of a default. Consider whether you want Charlie to have the power to assign this contract to someone else. Also consider if the contract will allow for any late payments. THIS ASSIGNMENT IS DUE AT THE END OF WEEK 12. THERE WILL BE AN ASSIGNMENT TAB ON THE TIMELINE FOR YOU TO SUBMIT YOUR CONTRACT.

For good and valuable consideration, this conditional sales contract is entered into be- tween Heavy Duty Equipment (Seller) and Tanyas Tasty Treats (Buyer). Seller agrees to sell and the Buyer agrees to buy the following goods on a conditional sale: One Warning- House Walk In Freezer, Model No. XJP231, Serial Number 246810. Sale price: [$ ] Sales tax: [ %] Other charges: [$ delivery and setup fee] Finance charges: [$ ] Total purchase price: [$ ] Deductions Down payment: [$ ] Other credits: [$0] Total deductions: [$ ] Amount financed: [$ ] ANNUAL INTEREST RATE: [ %]

The amount financed is payable in [ ] monthly payments of [$ ] each, starting on the [ ] of the month of [ ], [ ], and continuing on the same day each suc- ceeding month until paid in full. The title to the goods remain with the Seller until payment of the full purchase price, sub- ject to allocation of payments and release of security interest as required by law. The Buy- er agrees to keep the goods free from other liens and encumbrances and not to remove the goods from the below address without the written consent of the Seller. Buyer agrees to execute all financing state- ments as may be required of Seller to perfect this conditional sales contract. The entire balance shall become immediately due upon default on any installment due or other breach of this agreement. In the event of a default, Seller may enter upon the premises of the Buyer and reclaim said goods. If the Seller retakes the goods he/ she has the right to resell them for credit to the balance purchased, and Seller may reac-

quire same all as further defined and set forth under state law. On the demand of the Seller, the Buyer shall keep the goods adequately insured with the Seller named as the loss payee. On request, the Buyer shall provide Seller with proof of insurance. In the event of default, Buyer shall be respon- sible to pay attorney fees, collection costs, and other fees associated with enforcement of this agreement. This agreement is binding upon and inure to the benefit of the parties, their successors, assigns, and personal repre- sentatives. The full balance shall become due on default. Upon default, Seller will have the further right to retake the goods, hold and dispose of same and collect expenses, together with any deficiency due from the Buyer, but subject to the Buyer's right to redeem pursuant to law and the Uniform Commercial Code. This agreement shall also be in default upon the death, insolvency, or bankruptcy of Buy- er.

Signed under seal and accepted this [day] day of [month], [year]. _________________________ Buyer _________________________ Seller