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Week 4 Assignment Template:
Types of Business Law: Part 2: Contract Research Report
Prepared by: Lisa Ayers
Date: 06/22/2023
Walden University
Report to Address the Scenario
The purpose of this report is to inform Sue, a graphic designer at XYZ Corporation who also
owns her own photography business, on the risks she might encounter if she does not include
payment terms in the contract, she signs for a photography assignment with a pottery company.
There will also be suggestions on how Sue can fix this problem, if possible.
Cau+ons for Contract Terms
When payment terms are not expressly stated in a contract, Sue, the party seeking payment, may
be exposed to several dangers and difficulties. Lack of clear payment terms can lead to
uncertainty and disagreements regarding the sum, mode, and time of payments. Sue could run
across the following dangers such as she may experience payment delays or even non-payment
for her photography services in the absence of explicit payment terms. The pottery business
might take advantage of this ambiguity and delay or refuse payment, causing financial loss and
possibly harming Sue's business. Also, the absence of explicit payment requirements may lead to
disputes over the precise sum Sue should be paid for her labor. This would result in drawn-out
arguments or disputes, which would be frustrating and possibly put stress on Sue's working
relationship with the pottery company. Lastly, without clearly stated payment terms, Sue may
find it challenging to pursue legal action in the event of a payment disagreement. Clear and
precise payment terms are essential for defining the parties' contractual duties and serving as a
foundation for legal action, if necessary.
The following suggestions are made in order to handle the situation and reduce any risks Sue
might encounter as a result of the absence of payment terms. Sue should get in touch with the
pottery business and suggest changing the current contract. She should provide a detailed
payment clause that outlines the payment amount, the mode of payment, and the due date or
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milestones. Also, Sue should approach the pottery company to discuss and bargain the terms of
payment. Any misconceptions or objections can be cleared up with open and honest
communication, and a mutually agreeable payment arrangement can be established. Lastly, Sue
should seek legal counsel if she has trouble coming to an agreement with the pottery company or
fears that she won't get paid. A lawyer can examine the contract, advise Sue on relevant laws,
and help Sue pursue her rights and entitlements.
In conclusion, Sue's contract with the pottery firm for the photography assignment does not
include any payment terms, which puts her at risk of payment delays, arguments over the amount
of the payment, and a lack of legal remedy. Sue can lessen these risks and guarantee a fair and
open payment process by swiftly resolving this scenario through a payment clause revision,
effective communication, and getting legal counsel if required.
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Rosen, L. N., & Weaver, J. D. (2016). The Role of Contract Law in Protecting the
Informal Sector: The Case of the Ghanaian Photographer. Journal of African Law,
60(2), 249-272.
Horton, C. (2018). Essential Contract Drafting Skills: A Practical Guide. Cambridge
University Press.
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