CONTRACT ANALYSIS 5
Thecontract for sale
Thecontract for sale exists between two parties the seller and thepurchaser. There has been an offer for sale, consequently accepted,and the contracts now lists the terms and conditions of sale of therestaurant.
Theparties, seller, and the buyer are unnamed, but they will write andsign accordingly on competition of the contract of sale. There is aclear description of the item up for sale, which is a restaurant,with a clear location in the state of Virginia, clearly outlined. Theconsideration offered is the amount of one hundred and ten hundredthousand dollars in exchange for the entire Nueva Era Restaurant,together with all its assets, fixtures, equipment, phone numbers,leasehold, goodwill, trade name, customer lists, stock in traderestrictive covenants and all the appurtenances which are located inas well as upon the premise. These are all in the inventory listattached to the contract. In the terms of sale, the purchaser agreesto pay one hundred and ten thousand dollars upon sale, inclusive of atwenty-five thousand dollars paid as a deposit before or during thecontract signing.
Withinthirty days of the contract execution, each of the parties shouldhave a copy of the lease attached to the contract, labeled as exhibitB. Another condition is that there is a transfer of the occupancypermit to the purchaser for the restaurant on sale, any applicablebeer, wine or liquor licenses or other state, federal or countrylicenses required for business operation.
Atthe point of settlement, the seller will execute a bill of sale,assigning the title that conveys all fixtures and equipment alongwith all other items listed in the inventory list to the purchaser.In compliance with the state of Virginia laws on bulk sales law, theseller will convey the business itself and all its contents to thepurchase when they are free of any creditor claims. At the settlementof the sale, the parties will adjust all the taxes, utilities and anyother customary adjustments involving the sale.
Arestrictive contract concerning the contract shall state that seller,his officers, the directors, stockholders the owners, managers, thefamily members and the associates shall not engage in the restaurantbusiness within a ten-mile radius from the subject location of thesale for up to 2 years.
Asto the twenty-five thousand dollars deposit, the contract has a clearstatement. If the sale fails to take place for any reason, within 60days of the execution, the holder of the deposit shall return to thepurchaser. The contract operates under the law of the Virginia state.The contract infers that the terms of the contract shall serve beyondthe settlement date. Any changes or additions included in form ofwriting shall have all the parties’ signature and consent.
Thiscontract has been clear on all the requirements of a contract of itsnature. There are the parties required, offer, and acceptance(Tepper,2011).It is also very clear on the systematic activities, which shall leadto the completion of the sale and transfer of the business. Thecontract fails to indicate the damages to fall due in the event ofcontract breach, and this may then be up to a judge or jury if such acase were to emerge.
Buildingand construction contract
Thecontract clearly stated the details of the contract by introducingthe church as the owner of the property held in South Dakota, onwhich Raines intends to construct a dome. The contract has clearlystated the location of the land and failed to give the area coveredby the land. However, this information is not crucial to the grantingof the contract. The church and Raines have entered into negotiationsand have emerged with selected outcomes as terms and conditionsagreeable to both parties. The terms are binding to the parties’assigns, successors, and personal representatives.
Heis to demolish the existing structure at his own expense, obtain allthe necessary documents and licenses and permits required fordemolition and construction all at his own expense. The offer, whichhe accepted, included the requirement that the dome he constructsfits the desire and the description the church intends. Raines alsohas to construct the dome using professional level materials and tocomply with the necessary codes of conduct in building. Raines alsoagrees that he will have the building complete and in usablecondition within 60 days after signing the contract.
Alsopart of the contract is the church agreement to allow Raines to holdany private prayer meetings in or around the dome, provided it doesnot conflict with the church’s schedule. The church will laterassume all control over the church and consequently pay monthlyexpenses for its use. Raines receives this consideration in returnfor constructing the dome.
Thechurch has no condition listed in the contract for the constructionof the dome. It does however have warranties upon breach of whichRaines will be liable to pay damages. In the event that he delays inthe construction, he will be liable to pay damages in the form ofsurcharges beginning on the 61st day of the signing of the contract.The late fee amounting to one hundred dollars per day late is theamount in damages that he is liable to pay. The warranty states thatthe warranty breach will occur if the church will not have any partto play in delaying the completion of the same.
Thecontract stipulates that the church shall retain the title to thedwelling and its subject land. Raines access and use of the dome islimited and restricted by the church and is limited to religioususes. However, it is upon permission from the church by a schedule,which is agreeable to both Raines, and the church. This agreement ofthe schedule shall occur upon events arising and shall constantlyundergo review.
Thecontract relinquishes the church from any responsibilities over anyhurt or injured persons during the demolition or construction. Thecontract stipulates that the responsibilities to demolish thebuilding and construct the dome belong to Raines. He is consequentlynot able to transfer the responsibility or award the contract to athird party unless he obtains written permission from the church. Thetwo parties then apply their seals and signatures to the contractbinding them, their officials, and their representatives to the termsand conditions, which are agreeable
Thecontract has stated clearly the parties involved in the contract andwas clear in stipulating the duties, roles, and responsibilitiesaccorded to each party. The contract states the consideration, but islargely very vague. The contract stipulates the damages clearly inthe case of the breach of the warranty. All necessary permissions andauthorizations are in the contract. It is a well-functioning contractsince it possesses the basic requirements of the contract, which areoffer and acceptance (Tepper,2011).
Tepper,P. (2011). Thelaw of contracts and the Uniform commercial code.Cengage Learning.