Assignment:
Before you start on this week's part of the project, you learn more facts about the negotiation of this contract:
Bob decides that he wants the toys and calls you to set up a meeting to discuss the price and to examine the collection of toys to make sure they are in excellent shape.
On October 4th, you meet at a local restaurant whereupon Bob examines the toys, which are up to his standards. You offer to sell them to him for $750.00. Bob scoffs and offers $650.00. Although you are a bit frustrated with his counteroffer, you remember that you really need the money so you offer $725.00. Bob grumbles and increases his offer by a mere $10 to $660.00. He claims he will not pay a penny more. You lower your price to $720.00 and inform him that this is your best, final offer.
Bob states that he will not pay that price and departs the restaurant. Feeling defeated you collect your toys and go home. As you walk home, you wonder if you should have continued the negotiation and gone lower seeing that $700 is your goal price.
On October 13th, you get a call from Bob. It turns out that he combed the entire Internet and can't seem to find a set that is complete like the one you are offering. Sounding a little bashful, Bob offers to pay you $700.00 for the set. Just to toy with Bob a bit, you provide a price of $710.00. After hesitating for a few moment, Bob accepts.
You mutually agree that you will meet at noon on October 17th back at the restaurant that you met the previous week. You make a stipulation that you want payment to be in cash, particularly smaller bills.
Earlier you were introduced to the overview of the project for this course. For this week you will start on your way to drafting a contract for this situation by filling in the worksheet that appears as an attachment below. You will need to open the attachment and save it to your files.
Below you will find a chart that is missing information. By filling in this chart you are starting to build the foundation to your written contract. Fill in the missing information as complete as possible (for items such as addresses and description of the items, you can create that information).
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Party names
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Date of the contract formation
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Addresses of the parties
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Description of the items being purchased
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Date of delivery of the items
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Date and expected form of payment
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Agreed upon price
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1. Other than the items listed above in the chart, what else needs to be present for this to be a valid, written contract?
2. Why does this contract need to be in writing?
3. Reflecting upon the negotiation at the restaurant, what would you have done differently? Would you have offered the lower price of $700.00? Why or why not?