Business Law Phase 2 DB - Essay Example

Business Law Phase 2 DB EQUIPMENT SALES AGREEMENT Contract No ____________ This Sale Agreement Agreement is entered into by and between ______ (“Seller Company”) and _________ (“Buyer”).1. Sale of Equipment. Customer hereby agrees to purchase from Company the used equipment (“the Equipment”) set forth as follows:Type NumberMonitors 5 no’sPrinters 5 no’sDesktop computers 5 no’s2. Price. The price and time for payment for the Equipment is as follows:Price Due date$500 I month$500 II Month $500 III Month $500 IV MonthTotal amount is $2000 to be paid in four monthly installments.

Any amount payable by Buyer hereunder which remain unpaid after the due date shall be subject to a late charge equal to 1.5% per month from the due date until such amount is paid.3. Delivery. The Seller shall use reasonable efforts to deliver the Equipment to the Buyer on the deliver date set forth in Section 2. Deliver shall be made F.O.B. at Company’s offices in [City], [State]. If the delivery is not made within __ days of the scheduled delivery date, Buyer may cancel its purchase of Equipment.4. Infringement Indemnity.

Seller will defend and indemnify Customer against a claim that the Equipment infringes a United States copyright or patent, provided that (a) Buyer notifies Seller in writing within 30 days of the claim; (b) Buyer has sole control of the defense and all related settlement negotiations; and (c) Buyer provides Seller with the assistance, information and authority necessary to perform Buyer’s obligations under this section. Buyer shall have no liability of any claim of infringement based on use of Equipment altered by the Buyer.5. Disclaimer & Warranties.

The Seller would get only the Manufacturer warranties of the equipments purchased.Question IIKey elements of a Valid Contract:1. Identification of Parties involved: The beginning of the contract should always be with names of the parties signing the contract. In case of involvement of companies or organizations, the name of the company should be followed by the representatives. Contact information will be an additional advantage, if included.2. Background: The reason for both the parties to get into contract should be clearly stated.

The applicable date and time of entering into the contract by both the parties should be mentioned. 3. Limitations of the Contract: The details of the expiry date, if any, should be mentioned i.e. how and when will the particular contract end? In case of renewals, quote the date and time for contract renewal.4. Monetary Obligations: Clearly mention all the monetary obligations, costs involved etc of the contract. Also mention the details of taxes involved, their calculations and the person responsible for covering them.5. Terms of Payment: Clearly list all the due dates for payments, installments, penalties, if any, and the applicable interest rates, if any.6. Warranties: Be clear in mentioning about the warranties and the circumstance under which such warranties are allowed.

Also include disclaimers.References1. http://www.associatedcontent.com/article/contract_key_elements.html 2. http://www.huntingtonnews.net/business/law8.html