business law

HOMEWORK 2

 

This homework is based on tonight's class and is due Thursday, February 19, 2014, at the very beginning of class.  You are to select one of the two scenarios and prepare a contract.  Please be sure to address venue, jurisdiction, terms, and any other material issue you deem necessary to ensure a complete contract. After you have created the contract, you are to also explain specifically, what is the offer and what is the consideration. 

 

Scenario 1 :

Mork and Mindy own a candy store called the Sugar Shack in Bradenton, Florida.  Mork decides their company should branch out and Mindy is somewhat hesitant, but goes along with it.  The Sugar Shack reaches out to a loli-pop emporium in Atlanta, Georgia called “Suckers.”  The two businesses negotiate a deal where the Sugar Shack can lease space from Suckers for twelve months at a rate of $800 per month due on the first of each month.  As a condition, Sugar Shack agrees that they will not sell loli-pops as it would directly compete with Suckers.  The parties come to this agreement and need your help in creating a contract. 

Scenario 2 :

Humpty and Dumpty were sitting on a wall in Compton, New Jersey.  Humpty decides to sell twelve dozen eggs to Dumpty every two weeks for the next six months.  In exchange Dumpty agrees to pay Humpty $1.00 per dozen of eggs for the first three months and $.50 per dozen of eggs for the remaining three months.  Humpty offers to sell these eggs for the next six months to Dumpty exclusively.  In exchange for the added exclusivity clause, Dumpty agrees to pay an additional $500, which is due at the time of the signing of the agreement.  Humpty and Dumpty need your help in creating a contract. 

Sample

AGREEMENT

This Agreement is entered into between XXX (hereinafter “XXX”) and Dinastia Cardona d/b/a Don Cardona Tequila (hereinafter “Don Cardona”) and is durable for a period of one year. Collectively, XXX and Don Cardona are “the Parties” for purposes of this Agreement. In exchange for Don Cardona paying XXX ONE HUNDRED AND SEVENTY-FIVE THOUSAND DOLLARS AND ZERO CENTS ($175,000.00) of which $100,000.00 is to be paid immediately upon signing to XXX and the remaining $75,000.00 to be paid to XXX in increments of $25,000.00 on the FIRST day of each month for THREE consecutive months immediately following the initial $100,000.00 payment, the Parties agree as follows:

1. Don Cardona may use XXX face or body (said photographs must be pre-approved by XXX for advertising the Don Cardona Tequila product on an unlimited number of billboards;

2. Don Cardona may use XXX face or body (said photographs must be pre-approved by XXX as advertisements in an unlimited number of magazines;

3. Don Cardona authorizes and grants permission to XXX to “shout out” or name Don Cardona Tequila during any radio broad casts;

4. Don Cardona may retain XXX for up to six (6) hosting appearances at clubs, press conferences, marketing campaigns, or other similar events but said appearances must be arranged by separate contract or agreement and allow for additional endorsements, terms, and compensation; however, XXX may offer a discounted rate to Don Cardona per separate agreement;

5. Don Cardona authorizes and grants permission to XXX to name or mention Don Cardona Tequila in any of XXX songs or in any songs XXX performs with other artists;

6. Don Cardona authorizes and grants permission to XXX to display in any fashion (be it placement, holding, or otherwise) Don Cardona Tequila bottle(s) in his music video(s) of any song or songs XXX mentions Don Cardona Tequila.

The above six terms are valid for a period of one year from the date of XXX signature below, and may not be extended unless by express written agreement endorsed by both parties.

This agreement does not include any performances or shows with XXX endorsing Don Cardona Tequila. Said performances must be made by separate contract or agreement.

This Agreement shall be subject to and governed by the laws of the State of Florida and any litigation or disputes shall be held in Tampa, Hillsborough County, Florida.

This Agreement contains the entire understanding of the parties and supersedes all prior agreements and understandings (oral or written) between or among the parties with respect to such subject matter.

In the event any provision, portion, line, sentence, paragraph, or otherwise is stricken by any Court for whatever reason, the remainder of this Agreement shall remain in effect.

In the event any issue arises of this Agreement that results in litigation of any kind, in any Court, the prevailing party shall be entitled to reasonable attorney fees and costs.

_______________________ _____ ________________________ _____

XXX Date Juan Cardona as Authorized Date

______________________ _____ Agent for Dinastia Cardona

YYYYYY - as witness Date d/b/a Don Cardona Tequila

and Manager