BUSA 310 1st Edition Lecture 5 Outline of Last Lecture I Contracts a Employment Contracts b Damages under Contract Law Outline of Current Lecture I Contracts II Negotiable Instruments III Sales Current Lecture Practical Contracts if you want to have a lawyer help you with your contract the lawyer has to let you do what you want to do They can t tell you that your idea is bad but they can make suggestions to make your idea better and point them in the right direction Risk Analysis I II III IV Who will draft the contract Have to consider cost If there is a mistake in the draft the team that drafted it is responsible Usually want your side to draft the contract so you can get everything you want in it Parts of a Contract I II III Introduction Covenants these are all the promises you and the other party agree to when signing the contract Clauses a Severability Clause a clause stating that if we have already agreed to about 25 covenants but only 23 are fulfilled that the contract will still be upheld b Arbitration Clause refer to lecture 2 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Negotiable Instruments I Checks words take precedent over the numbers written on a check also written terms have precedent over typed terms Notes when you give a note to someone they can sell it to someone else Notes can be difficult to deal with II Sales When travel began to become easier in the United States states trading with other states became more common but laws were already established in all the states when it came to trading So when they started to trade with each other the laws were conflicting UCC refer to last lecture Buyer vs Seller Rights Buyer I II III IV Right to Reject Right to Cover Attorney fees Consequential and Inconsequential Damages Seller I II III Right to Mitigate losses or damages Right to not deliver Sue for consequential and Inconsequential Damages Warrantees can be limited but not always warrantees can t be applied unless it is based on the average lifespan of the item I II Express Warrantee when you tell someone the warrantee in writing and this can be enforced Implied Warrantee a warrantee that just automatically applies to something you buy Ex that when you buy an apple from the store it is edible is an implied warrantee Disclaimer Saying that you are not responsible for a certain product if it goes wrong used to warn about things that are foreseeable Products Liability I Negligence poor manufacturing poor design failure to war