Reducing a Verbal Agreement to Writing Simulation

JUS-641 Topic 8

Reducing a Verbal Agreement to Writing Simulation

Instructions: This is an example of a verbal negotiation for the sale of lumber. Please create a contract from the negotiation between the two business interests (using the template below):

Ken (Lumber Emporium): Hey John, I’m interested in purchasing plywood from you guys again. What can you provide me with?

John (Evergreen Lumber Supply): I can provide up to 400 23/32 in. x 4 ft. x 8 ft. RTD Sheathing for $5 a board on a monthly basis.

Ken: I don’t need that much, and can we work a little on the price?

John: I can do $4.75 a board but that is as low as I can go right now if you purchase 300 boards on a monthly basis? Will that due?

Ken: Yeah, that will work for Lumber Emporium.

John: Do you want to use the same liquidated damages provision we used last time?

Ken: Well, I don’t want anything to go wrong, but sure. If Lumber Emporium or Evergreen Lumber Supply fails to provide according to the terms, A $5,000 fee will attach.

John: Yup, that is right. When do you want the boards delivered?

Ken: On the 15^th of the month every month.

John: How long do you want the contract to run?

Ken: A year and a half. Is that good for you?

John: That works.

Ken: Alright! I’ll type up a contract and send it over to you. Make sure it looks like what we’ve agreed to on the phone and we’ll start delivery next month, February, on the 15^th, alright?

John: Sounds good man. Say hi to Lupe for me. Hope you guys had a good Christmas/New Years!

Ken: Thanks! You too!

(Complete Contract Below)

CONTRACT

Agreement made this                    day of                                         ,                      (year) between                                                                , and                                               , hereafter                                                       .

SECTION I

The parties to this agreement, in consideration of the mutual covenants and stipulations set out, agree as follows:

ARTICLE I SCOPE OF AGREEMENT

ARTICLE II TIME OF COMPLETION

ARTICLE III CONTRACT PRICE

ARTICLE IV PROGRESS PAYMENTS

Payments of the Contract Price shall be paid in the following manner:

ARTICLE V GENERAL PROVISIONS

ARICLE VI OTHER TERMS

SECTION II

INSTRUMENT IS THE ENTIRE AGREEMENT

The instrument contains the entire agreement between the parties, and no statements, promises, or inducements made be either party or agent of either party that are not contained in this contract shall be valid and or binding; this contract may not be enlarged, modified, or altered except in writing signed by both parties and endorsed in this agreement.

SECTION III

EFFECT OF AGREEMENT

This agreement shall inure to the benefit of and be binding on the respective parties.

IN WITNESS WHEREOF, the parties have executed this agreement on the day and year first above written.

_____________________________                                                   ________________________________

Signature of the First Party Agent                                                             Signature of the Second Party Agent

_____________________________                                                   ________________________________

Print Name of the First Party Agent                                                         Print Name of the Second Party Agent

_____________________________                                                   ________________________________

Name of First Party Agent Principal                                                          Name of Second Party Agent Principal

_____________________________                                                   ________________________________

Address of the First Party Principal                                                           Address of the Second Party Principal