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CONTRACTS Negotiation and Drafting. What is a Contract a: a binding agreement between two or more persons or parties ; especially one legally enforceable.

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Presentation on theme: "CONTRACTS Negotiation and Drafting. What is a Contract a: a binding agreement between two or more persons or parties ; especially one legally enforceable."— Presentation transcript:

1 CONTRACTS Negotiation and Drafting

2 What is a Contract a: a binding agreement between two or more persons or parties ; especially one legally enforceable b: a business arrangement for the supply of goods or services at a fixed price -Merriam-Webster

3 Have you agreed to a contract? How many people think they are party to a contract?

4 Examples

5 Credit Card Agreement

6 Examples Credit Card Agreement Signed agreement related to a job

7 Examples Credit Card Agreement Signed agreement related to a job Online agreement when starting a Facebook or account

8 Examples Credit Card Agreement Signed agreement related to a job Online agreement when starting a Facebook or account An agreement to buy something from a friend

9 Examples Credit Card Agreement Signed agreement related to a job Online agreement when starting a Facebook or account An agreement to buy something from a friend Buying something from a store

10 Facebook terms and conditions Switch to Firefox

11 Civil Legal Duties Groups of people, generally everyone. The specific individuals who willfully enter into the agreement. Laws of society bind everyone in it. Specific agreements in which the parties mutually bind themselves.

12 What does it mean to Contract? Contracts are about:

13 What does it mean to Contract? Contracts are about: Bargaining

14 What does it mean to Contract? Contracts are about: Bargaining Coming to an agreement

15 What does it mean to Contract? Contracts are about: Bargaining Coming to an agreement Being willing to be legally bound to your side of that agreement, as long as the other party is bound to theirs

16 Elements of contracting Offer Acceptance Consideration

17 Elements of contracting Offer Acceptance Consideration These are the basic elements, but contract law can get a lot more complicated

18 Offer An offer is an invitation to make a contract

19 Offer An offer is an invitation to make a contract Examples?

20 Offer An offer is an invitation to make a contract Examples? Displaying a take it or leave it contract online Bidding on ebay Putting a price tag on an item in a store

21 Offer An offer is an invitation to make a contract Examples? Displaying a take it or leave it contract online Bidding on ebay Putting a price tag on an item in a store Offers can go back and forth (but dont have to) until…

22 Acceptance The point at which one party agrees to the other parties offer Examples Clicking that you accept the online contract Winning an ebay auction Buying the item from the store

23 Consideration Generally, courts will only enforce a contract if both sides are getting something. What each side gives the other is called consideration.

24 Is this a contract? In each of the following examples, ask yourself if there is mutual consideration?

25 Is this a contract? You order a book of Amazon.com. Your credit card is charged, but no book ever shows up. Was there a legally enforceable contract?

26 Is this a contract? You order a book of Amazon.com. Your credit card is charged, but no book ever shows up. Was there a legally enforceable contract? Yes, you agreed to pay Amazon.com money and they agreed to send you a book.

27 Is this a contract? Last year, your uncle promised you an iPhone for your 18 th birthday. When you turned 18, he gave you his old broken basic cell phone. Was there a legally enforceable contract?

28 Is this a contract? Last year, your uncle promised you an iPhone for your 18 th birthday. When you turned 18, he gave you his old broken basic cell phone. Was there a legally enforceable contract? No, while your uncle made a promise, he did not receive any consideration in return. Consideration has to be more than good feelings.

29 Is this a contract? You signed up for a week long summer basketball camp which cost $100. You paid and went to the camp. When you got to the camp, they just had you watch football movies all day. Was there a legally enforceable contract?

30 Is this a contract? You signed up for a week long summer basketball camp which cost $100. You paid and went to the camp. When you got to the camp, they just had you watch football movies all day. Was there a legally enforceable contract? Yes. You agreed to pay money to the camp and they were supposed to give you basketball training.

31 Negotiation and drafting activity We are going to negotiate and draft a contract Negotiating and drafting contracts is something that a lot of lawyers doincluding hopefully me. The goal is to come to an agreement. This requires each side to compromise, so that they can get what they really wantto make a deal.

32 When drafting be sure to Include all the terms Dont be afraid of creative solutions Use specific binding language: Shall not Will X shall pay Y $10. Y shall wash Xs car. Not: X will pay Y $10. Y will wash Xs car.

33 Chris Browns new record deal Following the recent news reports of his arrest for Domestic Violence, Chris Browns record label decides not to renew his record deal. Chris Brown has found a new record companySong & Dance Recordsinterested in signing him to a new recording deal. Chris Browns agent, who is trained as a lawyer, is negotiating the terms of the deal with a lawyer for Song & Dance. After agreeing on the terms, they will draft a contract to bring to their respective clientsChris Brown and Song & Dance executives.

34 Record deal terms Royalties of music sales Duration of deal (number of albums) Termination Optional (if you have time): Cash advance (upfront money taken away from future royalties) Exclusive agreement (can Chris Brown record an album with a different label) When the next album will released Money for production


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