How to risks and liabilities associated with contracts

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Background: Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law. Each of the owners has experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts. They also know that to avoid possible disputes with employees and clients, contracts should be comprehensive, clear and specific.

The GC owners know that there are various types of contract agreements relevant to their business. GC will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, GC will engage in sales contracts with other businesses, and sales contracts between businesses and consumers and clients. Furthermore, GC will use electronic contracts, or e-contracts, in conducting online business transactions.

To reduce disputes and risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. Contracts must define rights and responsibilities of the parties. Also, since employees and/or independent contractors will be performing cleaning services on clients' properties, these contracts should require bonding for all employees.

You, Winnie and Ralph presented draft contracts for GC employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.

The GC owners reviewed the drafts and have some questions about the contracts.

Instructions: This is an application-oriented Learning Activity. You will not find verbatim answers anywhere. Engage in critical thinking and review this week's assigned readings. You may also need to review previously assigned materials in weeks 2 and 3.

At Winnie's and Ralph's request, it is your responsibility to research and provide answers to the GC owners' questions.

The first questions you need to address for the GC owners relate to the GC cleaner-employee contract.

The cleaner-employee contract specifies the following terms and conditions:

• specific duties to be performed by cleaner-employee

• salary for cleaner-employee

• work hours

• terms of payment for overtime or holiday work, if any

• sick leave

• vacation leave

• training requirements for cleaner-employee

• length of contract

• bonding for cleaner-employee

• periodic performance evaluation and how it will be conducted

• termination of contract, i.e., notice of termination, etc.

1. Consider the contract term: "training requirements for cleaner-employees".

Analyze and discuss several reasons - from the GC owners' perspective - why it is important to include in cleaner-employee contracts the specific terms and conditions regarding requirements for training.

2. Identify at least one (1) other term (other than the ones listed above) that would be important to include in the GC contracts for its cleaner-employees. Analyze and discuss why it is important to include this additional term in the cleaner-employee contracts.

3. Identify at least one (1) contract term - other than price - that should be included in a GC contract with a client for which GC is providing office cleaning. Analyze and discuss why it is important to include this additional term in the GC-client cleaning contract.

Reference no: EM132235856

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