Contract Analyzing

Contract Analyzing

In this study, I will focus on the analysis of the sale of goods agreement between a buyer and a seller for transaction of goods. The contract is divided into nine distinct sections. The beginning of the contract has an introductory phase where the buyer and the seller write their names and background information regarding the place they are located. These nine parts of the contract cover the terms and conditions that will validate this contract. The content of any contract between two or more parties is referred to as terms or a contract. Any agreement between parties generally has various terms. Simple forms of any contract also have terms.

The main terms usually consist of the price paid in a transaction and the subject or main topic of the contract for instance the services or Goods provided. Businesses commonly have standard forms of written terms. Some businesses usually have shorter terms, but others have long written terms. This sometimes depends on the type of services or goods used in an agreement or contract. This study has shorter terms since the first section highlights the sale of goods, which has the Conditions clause that provide specifics on what the seller in a contract should do to make the contract a success. This part highlights the duration on which the seller is supposed to deliver the goods to the buyer; it also highlights the nature of the goods in a detailed description.

This contract has a clause that indicates the essence of time, which supports the action of breach of contract whenever a contract fails to be completed on time. This clause in the sale of goods contact highlights the significance of time for the accomplishment of any task stated by the contract. This contract binds the buyer and the seller to agree on a specific time for the completion of the task. When the specific time for the completion of the contract is delayed, the buyer and the seller shall be practicing material breach of the contract. In the case the buyer and the sellers approve that time is not essential for the completion of the task as described by the contract clause known as time of Performance. It is expected of both parties to complete the task defined at a sensible period that the parties agree in the contract.

Section 2 highlights the purchase of goods, where the buyer commits himself by accepting the goods and paying for them this is the acceptance that will answer the offer that the buyer had proposed earlier. This part makes the contract valid acceptance indicates that the part given the offer has been accepted and this will constitute that the contract is valid. An acceptance is final it cannot be withdrawn or manipulated the terms of the offer. Section 3 focuses on the identification of goods, where the buyer and seller will agree that the goods highlighted match with what was agreed in the contract.

The fourth part shows the payment on receipt part where the buyer has to pay immediately he receives the goods in order to complete the sale. The fifth part illustrates the receipts construed as delivery, which highlights that the owner will have received the goods only when it has been delivered to the buyer at a certain location and at a certain time. The sixth part highlights the Risk of loss that covers a critical part that highlights that the seller will be responsible for any damage of the goods only before the buyer receives and accepts the goods.

The seventh part is titled warranty of no encumbrances that relieves the seller of any responsibility in relation to any security interest. In most lawful transactions or business transactions, a warranty is usually defined, as an assurance by a person to the other person that accurate conditions or facts will eventually happen is true. The second party is usually allowed to rely on the assurance made to them and follow for some kind of agreed remedy if it is a false promise or not followed according to the agreed terms. An example of a warranty is in a business law whereby a company gives out a warranty to its customers on goods such as electronics. The company can give out a warranty of a given period for instance, two years of assurance that the electronic will work properly. Therefore, in case, there is a problem one can return the electronic if certain conditions are made such as not tampering with the item.

Section 8 titled warranty of title highlights that the seller does not have the knowledge of the existence of any claims to the rights of the seller to the goods. The last section is titled the right of inspection where the seller is given a reasonable duration to inspect the goods and launch any complain before the time lapses failure to which the buyer will not complain of any damage of the goods after the time lapses. The contract has a Merger and Integration Clause that prevents the buyer and the seller from complaining that the contract did not reflect their comprehension of the contract details since the two parties could have changed it orally. This is evident since the two parties have written down all their agreements, offers and promises in the contract, because it will be extremely difficult or impossible to enforce any unwritten promise that existed between the two parties.

Liquidated Damages Clause is another clause under this Sale of good contract that focuses to explain the fact that sometimes it might be difficult for the buyers and the sellers to calculate the actual damages of contract breach. When sellers fail to deliver the required good to the buyers, they will be liable for any loses experienced by the buyers. Another aspect that may bring about breach of contract is the delivery of damaged goods.

When the sellers deliver damaged goods to the buyers, the loss and the damages experienced must be liquidated. This will ensure sellers handle the goods properly and make sure the goods are delivered in proper condition. According to statistics, the late fee charges are charged to either the sellers or the buyer who failed to honour the contract. When calculating the liquidated damages, it is vital to ensure that the amount of money for compensation is parallel to the amount of the damaged property. The buyers and the sellers who entered a contract should ensure that the liquidated damages do not intend to punish the party that breached the contract nor oppress them. Instead, they should focus on compensating for the damages incurred.

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