Business_Law__Offer_and_Acceptance_Video

Option 3: Contracts: Offer and Acceptance Video Julie Garcia Law/531 August 22, 2011 Angela Floyd Contracts: Offer and Acceptance Video Businesses are full of agreements made between individuals and other businesses. Although verbal agreements exist a formal contract provides better protection for both parties involved. Because formal contracts are legally binding, this formality serves as a safeguard for a business in a court of law. “Written contracts provide individuals and businesses with a legal documentation, stating the expectation of both parties and how negative situations will be resolved” (Vitez, Media 2011). For the purpose of this assignment, option three, Contracts: Offer and Acceptance has been selected. Based on the implied terms of the contact verbally communicated in the video a contract will be created. Contract Seller: Non-Linear Pro Item Purchased: 1each Non-Linear Pro Special Terms and conditions Training Included Option to buy or lease One-month trial bases, plus the cost of leasing the equipment Issues Although the seller, Jack Brannan convinces the customer into a one-month trail, the agreement has several gray areas. For instance, the seller of the Non-Linar Pro never answered the buyer’s question of how often the item needed to be upgraded or advised any fee’s or price point for upgrades. The training included was not detailed. For instance, how many days or how many trainers will be provided at time of trial, purchase, or lease period. In addition, there was no talk or negotiations about future technical questions or maintenance for the Non-Linear Pro. Although the buyer and seller agreed on the one-month trial bases, neither party discussed the cost of leasing the equipment. This is a major concern. The buyer and seller should have worked out pricing for both a lease and an outright purchase. This would have allowed the buyer to make a more economical choice. Also Jack Branna never addressed the lead-time for this item. Jack should have given the customer a time frame regarding when the Non-Linar Pro will be delivered or the exact start date of the one-month trail. Another important aspect that was left out was the payment terms. Does the buyer need to pay the leasing cost of the equipment upfront, before the unit is delivered, or at the end of the trial. Also if the buyer decides to purchase the Non-Linar Pro will the money that was already paid for the one-month trial be deducted if the Non-Linar Pro is purchased or leased. Conclusion This transaction has left room for assumptions. Making assumptions can be dangerous in the business world. The seller should have outlined clearly the terms of the sale. By detailing specific terms and conditions, he would protect himself, his company, and the equipment. The buyer should have also outlined expectations for this transaction. Although the buyer asked several important questions, he never received an answer. The above example contact is scary to look at because it contains no details to any aspect of the transaction. Both parties should have executed a formal contract. Reference Chron Small Business http://smallbusiness.chron.com/importance-contracts-business-906.html Retrieved August 22, 2011