Business Law
Erin Smith
Exercise 11.2
Question 1: What are the “two greatest contributors” to contract disputes? Why is it a good idea to use plain English instead of legalese when drafting a contract? What is a “letter of intent? ” What might be included in a letter of intent to avoid future disagreements over the legal effect of the letter?
The two greatest contributors to contract disputes are a) failure to address all possible situations, whether deliberately or not, and b) ambiguity in the provisions that are included. It’s a good idea to use plain English in contracts because if you don’t understand what a provision means, you might have trouble enforcing it. A letter of intent is a document outlining an agreement between two or more parties before the agreement is finalized. To avoid future disagreements over the legal effect of the letter, it is best to state in each letter of intent whether it is binding or merely a launching point for further negotiations.
Question 2: Describe briefly the “tips for contracts” contained in this article. In your opinion, are some tips more important than others? Why or why not?
In this article the tips for contracts involve general contract principals, performance, competition, termination, exposure, changes and enforcement. In my opinion, the most important tips involve performance. These are the most important details in a contract and need to be addressed carefully.
Question 3: The article points out that “any ambiguity in an agreement is construed against the party drafting it.” Is this fair? Explain.
I think it’s fair if you include a provision stating that the agreement will be interpreted as if drafted by both parties equally. That way both parties are responsible.
Question 4: What is an “integration” clause? What should it be included in a contract with respect to future modifications of the contract?
An integration clause states that the contract sets out the entire agreement between the parties and that no
Exercise 11.2
Question 1: What are the “two greatest contributors” to contract disputes? Why is it a good idea to use plain English instead of legalese when drafting a contract? What is a “letter of intent? ” What might be included in a letter of intent to avoid future disagreements over the legal effect of the letter?
The two greatest contributors to contract disputes are a) failure to address all possible situations, whether deliberately or not, and b) ambiguity in the provisions that are included. It’s a good idea to use plain English in contracts because if you don’t understand what a provision means, you might have trouble enforcing it. A letter of intent is a document outlining an agreement between two or more parties before the agreement is finalized. To avoid future disagreements over the legal effect of the letter, it is best to state in each letter of intent whether it is binding or merely a launching point for further negotiations.
Question 2: Describe briefly the “tips for contracts” contained in this article. In your opinion, are some tips more important than others? Why or why not?
In this article the tips for contracts involve general contract principals, performance, competition, termination, exposure, changes and enforcement. In my opinion, the most important tips involve performance. These are the most important details in a contract and need to be addressed carefully.
Question 3: The article points out that “any ambiguity in an agreement is construed against the party drafting it.” Is this fair? Explain.
I think it’s fair if you include a provision stating that the agreement will be interpreted as if drafted by both parties equally. That way both parties are responsible.
Question 4: What is an “integration” clause? What should it be included in a contract with respect to future modifications of the contract?
An integration clause states that the contract sets out the entire agreement between the parties and that no