TERM CONTRACT DRAFTING ASSIGNMENTUsing the contract design scenario on the back of this page, students will be required to draft a contract incorporating sufficient terms for the protection of both the Manufacturer and Distributor of a sports spectator product. As this is a learning exercise you will be expected to draft the contract before we have completed the applicable chapter in the textbook.The purpose of this exercise is three$-$fold. First, Chapter $3$ of the Textbook covers contracts from an academic point of view. This exercise will cover the practical aspects of drafting a contract.Second, we will familiarize ourselves with clauses found in extensive contracts and why they are there. Finally, we will gain an understanding of what lawyers do for us when they draft contracts and this will allow you to$,$ at the outset, provide your lawyer with the information needed, thereby reducing your legal fees.Contracts take three forms: oral contracts; written contracts; and those that are partly written and partly oral. In this exercise we will be preparing a written contract which may be in one of the following formats. Letter of Agreement $-$ in which one of the parties $($in this situation, most likely the distributor$)$ writes a letter on his, her or its letterhead, incorporating the necessary clauses and asking the manufacturer to sign and return a copy of the letter, keeping the original for his records.Invoices $-$ which would be the most common format for purchase and sale contracts but not appropriate for a distribution agreement of this nature. Most of the necessary clauses are found in mice type on the back of the invoice. The Formal Contract $-$ which identifies the parties, sometimes includes recitals, generally has all the paragraphs numbered and ends with formal signature lines. Schedules are often attached after the signature lines but these must be referred to in the body of the agreement or they will not be considered part of the contract.It is recommended that for this learning exercise the Formal Contract format and two precedents will be posted on the eLearn site. You download the precedents and use one or the other for the assignment. As these precedents are provided to you from CapilanoU resources, you have a limited licence to use it for educational purposes only. This means you may copy it verbatim without the worry of plagiarism or copyright infringement, but you may not use it for any reason other than for this assignment. Before using these precedents read them carefully to determine if all clauses and terms are applicable. Lawyers have precedents which they use to reduce the time spent on files, thus the precedent is not designed to fit every potential contract scenario perfectly.The lawyer must adjust the precedent to fit his or her client's specific needs. That being said, remember that it would be a poor precedent if a large number of terms or clauses had to be deleted. It may also be appropriate to add additional clauses. Leaving inappropriate terms or clauses in your contract will result in marks being taken off. Marks will also be deducted for grammatical, punctuation and spelling errors, although there should be few of those, given that most of the work is already in the precedent. When you are finished, provide a hard copy of your draft contract to me$.$ CONTRACT DRAFTING SCENARIOSummer $2024$Sections $01$ & $02$Senora Juanita Valdez moved to Vancouver, BC with her family. She started a business called Juanita's Muy Deliciosa Tortillas. The business address is $3478$ Caliente Street, Vancouver, BC V$7$M $2$R$5.$ She made tortillas, using an old family recipe, and sold them to specialty food stores in the Lower Mainland. Soon many businesses wanted her tortillas because they were very tasty.Junita could not keep up with the demand because she was using an old$-$style tortilla maker.The Waba Tortilla Machine Manufacturing Corp. is located at $498$ Industrial Drive, WabaSaskatchewan S$6$J $1$M$9.$ The business manufactures and sells a more automated tortilla making machine which could produce four times as many tortillas in less than half the time of Juanita's machine. Initially, the manufacture had a patent on the machine but after the $20$ year patent protection period, the patent expired. The Waba Tortilla Machine Manufacturing Corp. is located at $498$ Industrial Drive, WabaSaskatchewan S$6$J $1$M$9.$ The business manufactures and sells a more automated tortilla making machine which could produce four times as many tortillas in less than half the time of Juanita's machine.Initially, the manufacture had a patent on the machine but after the $20$ year patent protection period, the patent expired.jaspreet kaurcomments$66$ VievdsSenora Valdez ordered one tortilla machine from the Saskatchewan company and agrees to pay $$69,000\mathrm{.}00$ on the following terms and conditions:$-$ Juanita will pay $$9,000\mathrm{.}00$ on the date of delivery, November $16,2024,$ and the balance of $$60,000$ in two installments of half the balance plus interest of $4\mathrm{.}5\%$ per annum, due on the $15$th day of each of the next two months.$-$ the manufacturer will deliver the tortilla making machine to the buyer F$.$O$.$B$.$ Waba, Saskatchewan; no installation is required.$-$ the manufacturer agrees to provided two bottles of machine lubricant free of charge;$-$ the manufacturer will provide a one year, parts and labour, warranty on the machine. $-$ all of the Valdez assets are in Juanita's husband's name $-$ Juan Valdez. So$,$ in support of the loan to Juanita, the manufacturer asks for a guarantee from Senior Valdez.$-$ the parties agree that the contract shall be governed by BC law.jaspreet kaur CommentsUsing the contract precedent posted to eLear, draft a contract attempting to be as fair as possible to both parties, taking into account that Juanita Valdez is making a loan to the Waba Tortilla Machine Manufacturing Corp. Set the document up for signatures. Make sure your name and section number are on the title page. Include your calculations of the interest payments as part of your contract. You may also assume additional facts by including a list of same, but do not change any facts in the problem. Provide a hard copy to me and as a precautionary measure, keep a copy for yourself. This assignment may be done individually, in teams of two, or groups of three. Hand in one assignment per team or per group with all your names on it$.$ You may discuss matters with classmates but do the drafting separately. Obviously, a team of two or a group of three students may discuss the assignment with each other. That team or group of students may also discuss the assignment with another individual student, team or group. However, do the drafting separately, otherwise it will be a violation of the University's Policy on academic integrity, and will result in a zero grade. The copying of material is cheating and will result in a zero grade. An individual, team or group that shares material which is subsequently copied by another individual, team or group, even without permission, will also receive a zero grade. For complete details of the academic integrity policy see pages $5$ and $6$ of the Course syllabus.