Reference no: EM132011833
Background: The PI owners are aware of the importance of contracts used in business to both buy and sell goods and services. They are reviewing the Uniform Commercial Code (UCC), Article 2, that covers contracts for sales of goods.
In sales contracts, it is important to consider allocation of risk between a buyer and a seller to define value, and typically each party will want to shift as much risk as possible to the other party.
The PI owners understand that they would want different terms in their purchase contracts and sales contracts. First, they want to focus on their sales contracts for selling paint and other supplies, and have asked BCA to prepare a memorandum that recommends desired contract positions on a variety of terms for PI's contracts for sale of goods.
Instructions: You are tasked with preparing a memorandum to Pat, Gale and the PI owners to make recommendations for sales contracts.
The terms below are just a few of the terms that you, Pat and Gale determined should be included in a sale of goods contract for PI.
For each of these terms, recommend and explain details and policies for each of these terms in a contract for a PI sale of goods to a buyer.
For each of these terms, also include the UCC, Article 2, section that applies to the term.
1. Payment terms
2. Transfer of title and risk of loss or damage to goods PI is delivering to buyers
3. Inspection of delivered goods: how long a buyer has to inspect goods after delivery
4. Rights and obligations of seller and buyer if delivered goods conform to the order
5. Rights and obligations of seller and buyer if delivered goods do not conform to the order
Format for Memorandum: number each term/section
TO: PI Owners
FROM: your name
RE: Sales Contract Terms
DATE:
1. Payment terms
2. etc.