Contract Creation Paper

Submitted By mmess25
Words: 1716
Pages: 7

Contract Creation and Management Assignment
Michelle Impellizzeri
LAW/531
February 4, 2013
J. Thomas Witek

Contract Creation and Management Assignment Cheeseman (2010) stated, “a contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty” (p. 153). A contract must be between two or more parties, an offeror and an offeree, and exhibit the four basic requirements to be enforceable: agreement, consideration, contractual capacity, and lawful object. This paper will examine whether Quick Takes Video and Non-Linear Pro entered into such a contract.
The Contracts: Offer and Acceptance Video involves two companies, Non-Linear Pro and Quick Takes Video, and the lease of digital equipment on a trial basis. The purpose of the trial basis was to allow the editors of Quick Takes Video to use and familiarize themselves with the equipment for a month’s time to determine if the company wanted to purchase it at a later date.
A salesman from Non-Linear Pro, Jack, and the owner of Quick Takes Video, Hal, entered into discussion about the benefits of the digital editing systems that Non-Linear Pro had to offer. Hal began the discussion by stating he was not ready to commit to the purchase of any equipment; he only wanted to hear how the equipment could be advantageous to his company. After watching a video on the features of the editing system, Hal continued with follow up questions regarding upgrades and learning capabilities.
Jack ensured the editors of Quick Takes Video that they “would be up and running in a day, day and a half tops”. Additionally, Jack offered to bring in trainers from Non-Linear Pro to “train everyone who needs to be trained”. Even with these assurances, Hal was still undecided.
With Hal’s hesitancy, Jack offered to put a Non-Linear Pro system in Quick Takes Video’s editing room on a trial basis. With this offer, Jack stated, “I guarantee that your editors will be twice as fast once they get some experience”. To further understand the offer being made by Non-Linear Pro, Hal asked about the cost of the trial period. Jack specified it would be just the cost of leasing the equipment. When Hal inquired further the difference between leasing the equipment outright and the trial base condition, Jack replied “I guarantee once you see how this system works, you’re going to want more than one. And long-term it’s better to own your own equipment”.
Hal, on behalf of Quick Takes Video, agreed on the trial basis with Jack, from Non-Linear Pro, and the two parties shook stating, “it’s a done deal”. As Hal brought in his editor, Janet Mason, to talk about the new equipment coming into the editing room, he re-iterated that the editing system was being used for a trial basis and that Janet needed to work out the terms of delivery and set-up with Jack. Jack was present for Hal’s instructions to Janet.
A valid contract exists when all the essential elements to establish a contract are met and that is enforceable by at least one of the parties (Cheeseman, 2010). Within the conversation between Hal and Jack regarding the trial basis of the equipment, a valid contract was formed. All four of the elements of a contract were met.
Agreement
Jack made an offer to Hal to put Non-Linear Pro’s editing system equipment in Quick Takes Video’s editing room on a trial basis. Hal accepted this offer, and they both shook hands to affirm the agreement.
Consideration
To verify the terms of the agreement, Hal questioned the cost of the trial basis. Jack stated the terms; it would only be the cost of leasing the equipment. Hal further questioned the cost and was assured that the terms were as stated. The exchange of goods for money was supported in this consideration.
Contractual Capacity To maintain contractual capacity, both parties entered into the contract with the proper mindset, knowing that an agreement was made. Non-Linear Pro was…