Sale contract
The contract of performance involves a buyer and seller of pizza dough, pizza toppings, soft drinks, and desserts. The usual orders from most companies are a standard 150 pounds, but this time Jerry’s pizza offered to buy 200 pounds. Once Jerry’s pizza signed the contract, it automatically became a legally binding document between the two companies. Dazzling Dough Company, who was the seller, deliver the goods as per the contract but of different quantities that were not stipulated in the contract. The buyer paid an amount less than the agreed amount as he felt that the seller breached the contract and was willing to sue the companies for remedies. On the other hand, the seller was willing to sue the buying for remedies. From the scenario, it is clear that there is a misunderstanding that was probably brought up by the language used in the contract.
The first, despite that, is evident in the contract is the language used. The seller in the contract writes that 200 pounds are payable for the pizza dough, pizza toppings, soft drinks, and dessert. However, the contract does not stipulate the amount, and the quantities included per each of the items to be delivered. Additionally, the $30,000 to be paid does not specify whether it caters the four items in a lump sum, or 200 pounds per every item to be delivered. As a result of the ambiguity in the contract, there arises a misunderstanding that needs clarification.
From the seller’s view, language interpretation is reasonable because we are told that he used to sell other companies a standard quantity of 150 pounds of the pizza dough, pizza toppings, and soft drinks and dessert. If, for example, he sells the 150-pound pizza dough with a standard corresponding standard quantity of the pizza toppings soft drink and dessert, then it could possibly mean that the 200 pounds pizza dough was to be accompanied by a corresponding standard amount of the other four items. On the other hand, the buyer might have interpreted that the 200 pounds were only meant for the pizza dough, and no quantity for the other items or 200 pounds was representing the 200 pounds for each of the four quantities as listed in the contract. In this regard, buyer interpretation is reasonable. It is the duty of a seller to clearly stipulate the amounts of quantities and deliver the exact quantities as per the contract. In order to resolve the dispute, the binding document should have included the quantities for every item to deliver rather than generalize the figure. Don't use plagiarised sources.Get your custom essay just from $11/page
In order to have a legally binding sale agreement, the contract should include; two parties, mostly the buyer and the seller. The subject of contract which is always the goods being sold which must precise to avoid confusion, ownership transfer in which there is the provision of moving goods from the seller to the buyer, the price of the goods for which the buyer must pay and the sales contract which must include consent and clauses for the two parties. However, sometimes buying and selling can be offered without a legally binding or valid contract through simple offer and acceptance of goods.
Visual representation
| Sale Contract | |
| Summary | -A contract between Jerry’s Pizza (the buyer) and Dazzling Dough company (the seller) -the contract involves delivery of pizza dough, toppings, soft drinks and desserts. -the contract signed is not precise about the goods t be delivered. – companies own interpretation performs the contract and the result is both companies desiring to sue for remedies |
| Dispute source
| -the ambiguity in the contract is the main reason the disputes arise -the seller fails to precisely indicate quantities of particular and each item in the contract -the buyer on the other hand doesn’t enquire on the complex information and goes ahead to sign the contract -both companies feel they are right on their understanding and should seek court ruling |
| Interpretation
| -buyer interpreted that the items to be delivered will have 200 pounds of pizza dough -seller interpretations were that the 200 pounds will be delivered in corresponding proportions of pizza dough and pizza toppings, soft drinks and desserts. Both reasoning from the two parties is reasonable as each one a different view of the scenario. |
| Missing facts | -the contract was ambiguous which means some import information was missing -document was not precise Parties were not careful enough. |
| Proposed language in contracts | -language should have – Two parties – Goods – Ownership transfer – Price – Sale contact – Sale agreement
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| Recommendation
| -precise in quantity of each item – corresponding price of each item |
| Ethical consideration | -transparency -respect and loyalty -fairness |
| Specific consideration | -impartiality -avoid impropriety -fair
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| Recommendation | -both parties take responsibility
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| Settlement option | -split the difference -Reverse contract to original form |
| Methods of dispute | -arbitration -mediation |