Sample Contracts for Outside Setting (OS) company

A contract is basically a type of an agreement that is legally valid between two parties and which can cause serious trouble in case one of the parties goes against the agreement. There are certain elements which make up a contract and which are recognized by the law. Such requirements include the legality of the relationship agreed, capacity to act for both parties which are legal, interaction between the parties to make it legally binding, and acceptance and the offer involved (Lau et al., 2012). These elements are very important to make the contract valid according to the law and for the law to protect the relationship.

In most businesses which conduct businesses with each other and which are prone to challenges have the advantage of formulating a contract to prevent the actions of one from affecting the other business. For example in our case, Outside Setting (OS) requires having a contract with the manufacturer to prevent actions of the manufacturer that might affect the business of OS. OS is a company that deals with selling of outside furniture to its customers located different parts of the country. The company has also established an online shop where interested buyers can buy goods over the internet. The company also deals with customized goods as required by their clients (Lau et al., 2012). This is a business strategy that is meant to ensure that the company has increased its sales from one level to the next and thereby increase the revenue. Such opportunities and business ventures are prone to challenges such as delays, the requirements and eventually losses to the company. Formulating business contract form is very important to ensure that actions of either the manufacturer or the customer do not cause harm to the business. By formulating the contract to allow for a good business environment, the parties involved must agree and when one does not fulfill accordingly, then court action will follow. A breach of contract can make a company lose money and its reputation and it is therefore very important to avoid court actions while in business due to malpractices.  

Bilateral contract

The manufacturer in many cases has been found to either ignore or not put a lot of effort in answering the emails and other information regarding the customer order and in this case OS store. Not responding to the emails and messages creates a level of untrustworthy or lack of competence and this is dangerous for any business. Confirmations need to be done to ensure that there is no breakage of communication. In this case, OS can benefit from a bilateral contract that will ensure that in the future all emails and messages sent regarding the transportation and shipping of orders by the manufacturer is taken into consideration with the urgency it deserves (Lau et al., 2012). A bilateral contract will reduce the acts of the manufacturer lack of answering emails and eventually shipping products which are not according to the order. On the issue of late and delay in shipment, the contract will prevent the manufacturer from delaying any kind of order made which will in return lead to customer delivery on time. Delaying of products affects the business in terms of customer specifications and deadlines since most people love working on deadlines. In the case that the manufacturers do not deliver on time or deliver orders which are non-conforming, then there are consequences since this will be regarded as a breach of contract which is punishable by law which can end up making the party liable pay a fine of above five thousand dollars. There should be fewer cases of lack of consistency from the manufacturer since the goods sent are already paid for making it very unfair for the manufacturer to consider delivering goods as requested.

Punishments for breaching a contract must be signed and presented before a court of law making them legal if one party goes against the contract (Lau et al., 2012). Such a contract is vital since it increases the chances of the business at OS rising in terms of the revenues. There are serious consequences for parties which decide not to honor a contract. The manufacture after signing a contract will ensure that the liability of the goods ordered will be on the manufacturer and not the company. Delaying in delivering and responding to orders is a threat to the business. In the case where the manufacturer cannot make the delivery, the manufacturer is expected to reply the possibility of delays so that the company can find another supplier for the same products. It is very unethical and irresponsible for a manufacturer to not make deliveries on time or even communicate and therefore getting into a contract will reduce the chances of delays and lack of commitment to work.   

Sales contract

A contract has to be formulated between the customer and the company. Making of customized furniture means that the design has the probability of attracting only the individual who made the request. Therefore if a customer creates an order and wants the company to make the same design as per the preference, then there has to be a contract to be signed. OS has been facing issues with customers canceling orders immediately they are asked to make payment and the delivery to follow. This leaves the company with an added stock which would otherwise be liquid cash for the business. The manufacturer, in this case, OS should not undergo extra expenses and stocking of goods which were not collected by customers on the basis of cancellation (Lau et al., 2012). There should be a formulated document where the customer will give details of the names of the customer, what kind of furniture to be made, the price of the product, a down payment, time of payment, ownership, security interest, other conditions and the agreement. This kind of agreement will ensure that a customer honors the agreement through signing and fulfilling any requirements for the making of the furniture requested.

Having the customer even pay for a down payment for the furniture will ensure that the customer is genuine and this reduces the chances of having the goods rejected to a minimal level. No one is willing to let their money go to waste and so signing a contract will prevent the cases of cancellations. In the case that any party waives on any of the terms and conditions for the contract at any given time, the waiver will now be effective for the specific time and instance the action has occurred. Unless either party claims the upholding of the contract, the chances are that the contract will be rendered not valid. In such a case, the customer will be liable for not honoring the contract if he does not collect the goods as stated in the contract (Lau et al., 2012). Having such a contract is very advantageous to the company since this ensures that the business does not overstock and make furniture which will eventually be rejected by the customers. On the other hand, the contract is very important in ensuring that the customer is satisfied with the end product. Creating customer confidence is very important for the business since this will now create customer loyalty and eventually start gaining referrals which boost the business in huge volumes. In cases where there is a breach of contract, the party liable for the loss will be responsible for compensation to cater for any damages. This is an effective way to reduce the activities which might lead to one party taking advantage of the other party and not honoring the contract. Such actions are very effective for the business to operate without any challenges brought about by customer order cancellation.   

Sales agreement

The internet is one of the major areas where the businesses have gained a fortune through the creation and development of goods and services for customers to access and make any kind of purchase. Online shopping is the best kind of shopping since customers do not have to go from one section to the next looking for what they want. All that is required in to type the name and the products will appear. This is a simple and straightforward way of getting what one wants just by way of clicking or tapping. However, the simplicity of getting what one wants always comes with the challenge of specifications which might be similar to another product and upon delivery, the customer rejects the goods delivered. In such a case, there are chances that the business will suffer from the rejected deliveries and this is an issue for the company (Lau et al., 2012). Wrong interpretation of goods presented as being a binding offer could be a problem for the company. On the online platform, customers complain of having the outline very confusing and this makes it hard for them to get what they want.

On how to deal with the issue, the company has to clearly give details of every product and even offer a picture of the same so that no more complaints regarding the goods being confusing on the eyes of the customers. After the company has cleared the confusion on the online shop, a contract has to exist binding the buyer and the claims to the goods requested. When the customer clicks on the request for an order button, the customer has created a contract and the contract will be received by OS. In this case, if the goods are present the customer will create an order and if the goods requested are out of stock then the order will be rejected. Such a contract is very important for any activities conducted will be legally binding. The buyer in many cases can be typing in words at a very high rate and therefore confusing some words (Lau et al., 2012). It is therefore appropriate for the online shop to request the customer to confirm the number of items requested and the purchase price to eliminate errors. In the case the customer has submitted the order after confirmation, then the contract is valid and the goods are shipped whereas the customer is expected to pay the required amounts. This is the law in e-commerce which reduces the probability of being given wrong orders.

Memorandum

To: Staff

CC: Staff, Management

From: Management

Date: 7-November- 2017 

Subject: Adherence to product delivery and customer specifications

Due to the numerous cases of delays and misinterpretations of customer order, Outside Setting (OS) has decided to formulate laws and contracts that will make it possible for the company to realize its goals and this can only be made possible if rules and way of performing the business are followed. In the past, the company has been dealing with the issue of customers complaining about different deliveries from what they order and this has been a problem for the company. Also, there has been an issue with the fact that some customers are canceling orders which have already been completed and this is causing the company lots of money in expenditure. Therefore, the company has decided to make it clear for every interested customer to sign an agreement which will ensure that there are no mistaken words during delivery or collection of items ordered. A contract will be the best to ensure that both the company and the customers do not go against the requirements of each other. Breaching of contract will amount to serious court cases that will lead to more problems for the involved parties. It is therefore important for both parties in agreement to make a point of honoring the agreement. This move has been established and reached at to prevent further losses to the company and also increase the loyalty with customers. Therefore, any order made by the customers will now be required to undergo a series of processes in order to deal with lack of competence in either purchasing or delivering. Each staff member dealing with customers is now recommended to ensure that there are no cases of wrong orders and wrong deliveries. The aim of the agreement is to allow for a cohesive environment where one can do business and make the customer satisfied with the goods made.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference

Lau, T., Johnson, L., & Open Textbook Library,. (2012). The legal and ethical environment of     business.