Review the draft Sale of Goods Agreement

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For this assignment, you will be reviewing a sample contract and identifying key terms that affect areas of risk then proposing ways to mitigate those risks. That is an important skill for contract negotiations and risk management. We understand this will be new to many of you. The goal of this assignment is to help you practice reviewing a contract and applying the skills we have covered in the class so far. There is no one “correct” answer. We expect the responses and your comments will vary based on your experiences and perspective on the contract terms. This Assignment is worth a total of 100 points.
Facts: You work for a company called National Restaurant Chain (the “Buyer”). You are negotiating a contract to purchase uniforms from ABC Uniform Company (the “Seller”). The companies have already engaged in initial discussions and entered into a Letter of Intent that outlines the basic terms of the contract. Please read the Letter of Intent
to get an understanding of the basic terms the parties have agreed to.
Assignment: Review the draft Sale of Goods Agreement
that is included with the materials. It is your job to review the Sale of Goods Agreement to: 1) make sure that it contains the same terms as the Letter of Intent; 2) identify any areas of risk that may need further negotiations before the parties sign; and 3) identify any important contract terms that may be missing.
Step 1: Complete the Contract Profile Form
with the terms from the Sale of Goods Agreement. This will help you to identify the key terms and any terms that may be missing. On the Contract Profile Form, there are different columns where you can type in information from the contract. This Form is designed to be a summary of the important terms. You do not need to copy/paste the complete provision from the Agreement. Instead, put in a short description of the term. If there is a term that is missing, leave it blank. This is a tool to help you identify and summarize terms from the Agreement. You may want to refer to the Contract Review Checklist
included in your readings. Your grade will be based on whether you identify the terms from the Agreement, not on how you describe them. This portion of the Assignment is worth 50 points.
Step 2: In a separate document, put together a Memo with responses to the questions below. These can be short responses with bullet points and explanations. Each question is worth 10 points.

1) Are there any terms in the Agreement that are different than what is in the Letter of Intent? If there are, identify the differences so they can be corrected in the Agreement.

2) As the Buyer, identify 3 areas of risk that your company has in the Agreement and suggest ways to mitigate those risks. That could be financial risk, operational risk, risk from external factors or potential areas of liability. For each area of risk, identify the section of
the Agreement that is relevant and things your company should consider to help mitigate the risk.

3) Section 17.06 of the Agreement titled “Dispute Resolution” is incomplete. Make a suggestion for what to propose in this Section.

4) Are there any terms that are missing that you think should be added to the Agreement?

5) If you wanted to add a Service Level Agreement or Key Performance Indicators to this Agreement, what are you some things you would consider?

6) Bonus Question for Extra Credit of 10 points (Completely Optional): Now, switch sides and look at the Agreement from the perspective of the Seller. What is a key area of risk for the Seller? Identify 2 provisions in the Agreement that present risk to the Seller and suggest ways for the Seller to mitigate those risks.

Final Product: Memorandum with Completed Contract Profile Form Attached

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